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RETA 6470:

Managing water in Asia’s river basins:Charting progress and facilitating investment

(Financed by the Japan Special Fund)

The Vu Gia-Thu Bon Basin

January 2011

Department of Natural Resources and Environment,Quang Nam Province



i

Updates

0 1st draft for internal circulation, prepared before the 1st stakeholder workshop

0b Comments from 1st workshop incorporated; some re-structuring and formatting

0c Small corrections of no significance

About RETA 6470

RETA 6470, 'Managing Water in Asia’s River Basins: Charting Progress and Facilitating Investment' aims toencourage further basin water investments under ADB's Water Financing Program and to demonstrate goodIWRM practices in river basins across the region.

The project runs until mid 2011. It is executed by ADB in collaboration with Network of Asian River BasinOrganizations (NARBO) and is hosted by Center for River Basin Organizations and Management (CRBOM) inSolo, Central Java. It is financed with a grant from the Japan Special Fund made available by the Governmentof Japan

Pilot activities are conducted in river basins in Cambodia (the 4-Ps area of Prek Preah, Prek Krieng, PrekKampi, and Prek Te), Indonesia (Bengawan Solo), Orissa (Baitarani), the Philippines (Mananga, Kotkot andCombado-Lusaran) (Central Cebu), and Viet Nam (Vu Gia-Thu Bon).



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Contents

About RETA 6470 ............................................................................................................................................... i Location map......................................................................................................................................................iv Acronyms and abbreviations ....................................................... ...................................................................... . v Summary............................................................................................................................................................ v 1 Introduction ................................................. ........................................................ .................................... 1 2 Overview of the basin..................................................... ........................................................................ . 1

2.1 General ............................................................ ........................................................... ................. 1 2.2 Geography ..................................................... ........................................................... ................... 2 2.3 Economy and livelihoods .......................................................... ................................................... 5 2.4 Legislation............................................ ............................................................ ............................ 6 2.5 Policies and administration .......................................................... ................................................ 9

3 Zoning for development ........................................................................................................................ 11 3.1 Overview.................................................................................................................................... 11 3.2 Basinwide aspects ....................................................... .............................................................. 12 3.3 The mountainous uplands.......................................................................................................... 13 3.4 The central parts........................................................................................................................ 18 3.5 The coastal zone ....................................................................................................................... 19 3.6 Da Nang City ............................................................................................................................. 20 3.7 Knowledge base and IWRM framework..................................................................................... 23

4 Sectors of the future.............................................................................................................................. 25 4.1 Agriculture and aquaculture....................................................................................................... 25 4.2 Storage capacity and hydropower ............................................................................................. 28 4.3 Industry, manufacturing, services ........................................................ ...................................... 29 4.4 Tourism and recreation.............................................................................................................. 29 4.5 Forestry and mining .................................................. ....................................................... .......... 30

5 Environmental management ...................................................... ........................................................... 35 5.1 Overview.................................................................................................................................... 35 5.2 Surface water quality and aquatic habitats ........................................................ ........................ 35 5.3 River network and connectivity ........................................................ .......................................... 37 5.4 The forests................................................................................................................................. 37

6 Bottom line ........................................................ ................................................................................ .... 39 References....................................................................................................................................................... 40



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Appendices

A Legislation and policy............................................................ ................................................................ 42 B Basin-level management issues ................................................... ........................................................ 44 C Environmental baseline summaries ............................................................... ....................................... 47

C.1 Air quality................................................................................................................................... 47 C.2 Water quality.............................................................................................................................. 47 C.3 Solid waste ................................................................................................................................ 48 C.4 Forests and biodiversity............................................................................................................. 51 C.5 Public health ...................................................... ........................................................... ............. 53

D Environmental issues............................................... ........................................................ ..................... 55 D.1 Agriculture.................................................................................................................................. 55 D.2 Industry...................................................................................................................................... 55 D.3 Tourism...................................................................................................................................... 57 D.4 Hydropower ............................................................................................................................... 57 D.5 Forestry...................................................................................................................................... 58 D.6 Urbanization............................................................................................................................... 58 D.7 Fisheries .................................................... ........................................................... ..................... 59 D.8 Mining ..................................................... ........................................................... ........................ 59 D.9 Transportation............................................................................................................................ 61

E Climate change vulnerability ....................................................... .......................................................... 64



v

Acronyms and abbreviations

DARD : [Province/city-level] Department of Agriculture and Rural Development

DONRE : [Province/city-level] Department of Natural Resources and EnvironmentIWRM : Integrated water resources management

MARD : Ministry of Agriculture and Rural Development

MONRE : Ministry of Natural Resources and Environment

MDG : Millennium development goal/goals

PC, PPC : People's committee, Provincial People's Committee

NARBO : Network of Asian River Basin Organizations

NTFP : Non-timber forest products

RBC : River basin committee

SEA : Strategic environmental assessment

VGTB : Vu Gia-Thu Bon (River Basin)

WWF : Originally 'World Wildlife Fund', later 'World Wide Fund for Nature', today simply an acronym inits own right

Summary

The Vu Gia-Thu Bon Basin covers major parts of Quang Nam Province, Da Nang City, and a small part of KonTum Province. Its area is 10,350 km2 with a population of around 1.8 million.

The basin has a rich potential for continued development. It has abundant natural resources, including land,water, forests and hydropower. The outlook is bright for a prosperous future, with sustainable livelihoods as acommon denominator across the basin and among the various sectors of the economy.

For quite some time, the economy has been in a state of evolvement, with the relative significance shiftingfrom agriculture to industry and manufacturing and further on to the service sector, including tourism. Thisrequires a supportive water resources allocation, reflecting new demands while respecting traditional ones. Inthis connection, the water efficiency must be enhanced in all sectors, aiming at higher outputs per m3 of water in the short term, and higher value generated per m3 in the longer term. Improved storage capacity canfacilitate the development.

General development opportunities include for example (i) water security: Safe water and sanitation, water for cultivation and other production, and consolidation of sustainable livelihoods; and (ii) a healthy river basin:Wastewater and solid waste management, and improved water quality. There is a need of institutionalcapacity-building for basin-level management, in support of good modalities for dialogue within the basin andamong sectors. The related knowledge base may be consolidated.

Specific development needs and opportunities include for example

• the mountainous uplands: Flash flood mitigation; hydropower, water storage and reservoir operation;land management; rural livelihoods development; and community-based tourism;

• the central parts of the basin: Agricultural productivity, agricultural value chains; aquatic habitats,environmental flows, connectivity; drought management; flood protection; groundwater development;morphological management; and water storage and allocation;

• the river mouths and the coastal zone: Aquaculture productivity and sustainability; mangroves,wetlands, aquatic habitats; flood protection and typhoon preparedness; salinity control; andmorphological management;

• Da Nang City: Flood protection and saline intrusion; and raw water availability



1

1 Introduction

This synthesis of water-related development needs and opportunities in the Vu Gia-Thu Bon Basinis comprehensively based on recent studies, as well as background documents and presentations

from the 5th and 6th NARBO training in 2009 in Hoi and Da Nang, respectively, both of whichapplied the Vu Gia-Thu Bon Basin as a general case study.

The document has been comprehensively upgraded based on presentations and discussions at aworkshop in Hoi An in September 2010.

A basin development roadmap is being prepared in parallel as a separate document.

2 Overview of the basin

This chapter provides an overview. It is based on Nghia (06), except where otherwise indicated.Additional information is attached as appendices.

2.1 General

Vu Gia and Thu Bon rivers originate in the high mountains on the east side of the Truong SonMountain Range. They flow into the East Sea through Dai (Hoi An) and Han (Da Nang) river mouths. 1

The basin is surrounded by Cu De Basin to the north; Laos to the west; Tra Bong Basin (part of theSe San Basin) to the South; the Tam Ky Basin to the East; and the Eastern Sea.

The Vu Gia-Thu Bon Basin at a glance

Area: 10,350 km2Population: Around 1.8 million (173 p/km2)

Average rainfall: 2-4,000 mm/year (increasing towards the mountains)The basin covers major parts of Quang Nam Province (with its total population of 890.000)

and Da Nang City (with its total population of 1.5 million), as well as a small part of KonTum Province. The population of Hoi An is 122,000.

With its abundant natural resources, including land, water, forests and fisheries, the basinhas a rich potential for continued economic development.

Development needs include water and sanitation for households; irrigation; flood and droughtpreparedness; morphology; water quality; salinity; hydropower; and tourism.

An RBC is being established under Decree 120/2008 about river basin management,replacing two existing coordination bodies

-----------The Basin has about 2.5% of the nation’s water, produces about 1.5% of GDP, and has

about 2% of total irrigation water use. It is relatively well endowed with water, but the

water use appears to be very inefficient, and the value of irrigation production per cubicmeter of water use is low. In the dry season, as a result of extraction, the rivers of thebasin are creeping up to the moderate stress level by international standards. 2

Hydropower generating capacity is projected to increase by 275% by 2025, representing over 88% of the technical and economic capacity of the basin. By 2020 water extractionswould see the basin in the middle of the moderate stress range.

The impacts of disasters are high, with 23 people per million of population killed on averageeach year, and damage costs equivalent to about 7% of the basin GDP per year.

This basin also has high conservation importance.

1 Section based on Ngia (05) and Trinh (Sep 10)2 This and the following two paragraphs quoted from ADB (Nov 09)



2

Its upstream parts are steep with narrow riverbeds, steep banks and many cascades. In the middleand downstream reaches, the riverbed is rather wide and shallow. In the downstream reaches, thebanks become low, allowing overflow into fields and villages during the flood season.

The Vu Gia River has many tributaries: Dak Mi (or Cai River), Bung, A Vuong and Con Rivers. Thelength of the Vu Gia River to its mouth in Da Nang is 204 km. The catchment area around Ai Nghiais 5,180 km2.

The Thu Bon River originates at the borders of the three provinces of Quang Nam, Kon Tum andQuang Ngai at an elevation of more than 2,000 m. It enters the sea through the Dai estuary. Up toGiao Thuy, the Thu Bon has a catchment area of 3,825 km2 and a length of 152 km.

In the downstream area, there is an exchange of flow between the two rivers.

2.2 Geography

River network

The Vu Gia-Thu Bon river system originates on the eastern side of the Truong Son mountain range.

Its upper part is short and steep with a narrow riverbed, steep banks and many cascades. Thesystem meanders once or twice. In the middle and downstream reaches, the riverbed is rather wideand shallow. In the downstream reach, the banks become low, allowing overflow into fields andvillages during the flood season.

The system is formed by two main rivers: The Vu Gia and the Thu Bon. The Vu Gia has manytributaries. The Thu Bon originates at the borders of the three provinces of Quang Nam, Kon Tumand Quang Ngai at an elevation of more than 2,000 m. It enters the sea through the Dai estuarynear Da Nang. The drainage area of the entire system is 10,350 km2 (while the area for basin-levelplanning may be slightly larger).

Figure 1: River network

Da Nang

Tam Ky

Hoi An

500 km0

Laos

Borders are indicative



3

Towards the downstream area, there is an exchange of flow between the two rivers. In the wetseason, the Quang Hue River diverts part of the flow from the Vu Gia into the Thu Bon via theQuang Hue cross-connection, and further downstream, Vinh Dien River returns part of the water back from the Thu Bon to the Vu Gia. In the downstream stretch, the river network is rather dense.Apart from the flow exchanges, the mainstreams are also supplied with additional water from other branches.

Figure 2: The Quang Hue cross-connection

Source and copyright: Google

The Quang Hue cross-connection influences the raw water flow to Da Nang City (in the dry season)and the flood flows (in the wet season).

Rainfall and flow 3

The water resources are under pressure, in terms of quantity and quality. Groundwater is sparse.

The total annual rainfall varies between 2,000 mm in the low areas and 4,000 mm in the mountains.

There is a pronounced seasonality.

In terms of rainfall, a distinction is made between the monsoon season and the dry season. Themonsoon season normally lasts for four months, from September through December. The monsoonseason starts earlier in the mountainous areas, because of the West Truong Son mountain range,than in the coastal plains. Nevertheless, the highest rainfall usually happens in October andNovember in the whole basin. Rainfall during the monsoon accounts for 65-80 percent of totalannual rainfall, with 40-50 percent of the annual rainfall in October and November.

The dry season is from January through August. This season usually occurs from February to April,accounting for only 3-5 per cent of the total annual rainfall.

In May and June there is a secondary rainfall peak, which is pronounced towards the north-westernpart of the area and causes a Tieu Man flood period in the Bung River Basin.

3 Section bases on Nghia (05) unless otherwise indicated

0 5 km



4

Figure 3: Monthly rainfall (mm/month)

Source: Institute for Water Resources Planning (IWARP)

In terms of flow, a distinction is made between the flood season and the low-flow season. The floodseason starts 2-4 weeks into the monsoon, normally in mid September (but sometimes earlier), andlasts until early January. The beginning and end of the flood period as well as the maximum floodperiod are quite consistent in Quang Nam Province and Da Nang City.

The flow during the flood season is 62-69 percent off the annual volume, with 26-31 percentoccurring in the peak month, November. The driest month is April, with 2-3 percent of the annualflow. In years with little or no early rain in May and June, however, the lowest flow may occur in Julyand August, particularly in sub-basins with an area below 300 km2.

The low-flow season can be divided into two periods:

(a) The sustainable flow period: Discharges during this period are mainly supplied by the storedvolume in the river catchment. This is the reason why the discharges first decline and thenstabilize (usually from January to April); and

(b) The unsustainable flow period from May to July: Flow during this time is unstable. The water supply sources for these flows are groundwater and rainfall in the low flow season (mainlyTieu Man rains in May and June), because the lowest flows occur twice a year in local riversand streams, with the first period falling in March and April, and the second period in Julyand August.

The area having the largest discharge during the low flow season is the upstream reaches of themain rivers, with a specific discharge of 25-30 l/s/km2. The areas having the smallest dischargeduring the low-flow season are in the northern and north-western parts of the basin, where thespecific low-flow discharge is 15 l/s/km2.

Table 1: Average flow rates

Location Flow Catchment area Specific yield

m3/s km2 l/s/km2

Thu Bon river at Nông Son 274

Thu Bon river at Giao Thuy 327 3,825 85

Vu Gia river at Thanh My 124

Vu Gia river at Ái Nghia 354 5,380 66

Data: 1977-2001

Source: Pham Ba Huyen (Dec 09)

1000

800

600

400

200

0

J F M A M J J A S O N D



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Groundwater

Sustainable groundwater yields in the Vu Gia-Thu Bon Basin are currently unknown.4

• In the highlands the aquifers are unconfined and there is a strong interaction betweensurface and groundwater. During the dry season as much as 85% of the base surface flowscome from the groundwater reserves.

• In the central highlands, groundwater is mostly used for domestic and small-scaleproduction needs.

• In the coastal zone there are many wells. They must be at least 15-30 m deep to obtain anadequate quality. The majority are hand dug and sometimes cannot safely be dug to therequired depth. These wells typically serve the lower income populations providing themwith poorer quality water, particularly during dry times of salt water intrusion.

Inland waterways

Transport by waterways accounts for 5-8% of the total transport load. Most of it takes place throughloads of 5-10 ton per boat, operating over short distances of 20 to 50km. 5

Thu Bon and Truong Giang are the main waterways for transport. They offer 941 km of navigable

inland waterways but only 307 km (33%) is managed and used, mainly because of poor inlandwaterway infrastructure and low demand for this type of transport.

The scope for expansion is limited, because of poor natural conditions that restrict use of waterways (such as steep and otherwise unsuitable topography in upper areas, and shallowchannels with seasonally dry conditions).

2.3 Economy and livelihoods

The basin has a diversified economy of agriculture, forestry and fishery, industry, handicraft andservices. However, the economic starting point is very low. This, in addition to a poor infrastructure,forces the local economy to depend on agriculture. Industry is underdeveloped, commodityproduction and exchange is limited, and trade and services are developing at a low rate of growth.

The following figure shows the relative economic significance of agriculture, industry and services.In terms of livelihoods, however, agriculture will remain predominant for years to come.

Figure 4: Sector contributions to the economy of Vu Ghia-Thu Bon Basin (2008)

IWC (Feb 09), quoting various sources

Economic growth in the province has had a major impact on poverty. GDP per capita increasedfrom 178 to 266 USD from 1998 to 2003, and the rate of poverty reduction has been over 6%annually since the late 1990s.Between 2001 and 2004, some 27,000 households were lifted out of poverty. Still, there is a high incidence of poverty in the upper basin with its majority of ethnicminorities. 6

4

Section based on IWC (Feb 09), quoting Kellogg Brown & Root (2008) and To (1996)5 Section extracted from ICEM (Jan 08)6 WWF (Nov 05)

Agriculture: 25 percentServices: 38 percent

Industry: 37 percent



6

The cultivated area is some 83,000 ha (8 percent of the basin area) (2000), including 63,000 ha for annual crops, 15,000 ha for miscellaneous gardens and 5,000 for perennial crops. Most cultivationis rainfed, especially in the upper basin, where crop yields are low due to single cropping inunstable areas. Some areas have deteriorated due to slash-and-burn cultivation.

In the lower parts of the basin, two crops of rice can be grown per year, with yields around 5.1 t/haper crop.

Aquaculture has developed comprehensively in all fresh, brackish and saline water bodies,supported by new production models and improved technology, especially for black tiger shrimpbreeding in brackish waters. Aquaculture occupies 495 ha (2000), producing an average annualyield of 1.05 metric tons per ha. The basin has a coastline of about 60 km and two estuaries, theHan and Cua Dai Rivers, with rich and diverse fishery potentials. Along the coast, brackish andsaline surface waters are abundant, offering favourable conditions for aquacultural development.

Several industrial zones have been approved for foreign investment; but still, industries are mainlybased in Da Nang City. Local industries produce key products of local specialties, which are highlycompetitive, while core and rural industries do not exist or are not yet consolidated.

The topographic conditions (with 75 per cent of the area shaped by hills and mountains) areadvantageous for water resources development projects as well as small- and medium-scalehydropower cascades. At present, the area has 65 reservoirs and 250 weirs. These storagestructures irrigate 30,000 ha of rice and 10,000 ha of subsidiary crops and cash-crop trees. It isplanned to construct another 60 reservoirs and weirs in order to increase stable irrigation from 69per cent to 75 per cent by 2010. Also, according to the industrial plan, Quang Nam Province candevelop eight large cascades and 30 small and medium-scale cascades on different rivers (mostlyin the Vu Gia Basin).

2.4 Legislation

Section comprehensively based on DONRE and ADB (Aug 10)

The constitution

The present constitution is from 1992 and was amended in 2001. Its Article 17 states that

The land, forests, rivers and lakes, water sources, underground natural resources, ... and other property defined by law as belonging to the State fall under the ownership of the entire people.

Law on Environmental Protection (1993, amended in 2005)

This law regulates protection of the environment, recognizing the importance of environment to thelife of human and other creatures as well as to the economic, cultural and social development of thecountry, the nation and mankind.

Environmental protection, as stipulated in the law, includes activities aimed at preserving a healthy,clean and beautiful environment; improving the environment, ensuring ecological balance,preventing and overcoming adverse impacts of man and nature on the environment, in support of a

rational and economical exploitation and utilization of natural resources.

Law on Water Resources (1998) and secondary legislation 7

The public ownership of water resources is promulgated in the Law of Water Resources: 'Water resources come under the ownership of the entire population under the unified management of the State'. This implies that water resources are a national property and water protection is a commonconcern of the entire population.

The law applies a comprehensive and integrated approach to water resources management,including quantity and quality of surface water and ground water. It also presents a river basinapproach to planning and management. It therefore cuts across administrative lines at the nationallevel and across provincial boundaries at the local level.

7 This and the following section based on MRC-BDB (Apr 05), quoting Pham Tuyet Mai (Oct 02)



7

It lays out a concept of water rights, with priority given to domestic uses. Financial obligations of water users are introduced, including sewage disposal fees. The law introduces a National Water Resources Council (NWRC) at the central level and river basin committees (RBCs) at the local levelas advisory, coordinating and planning bodies.

Article 57 defines state management of water resources as:

• Formulating and managing the implementation of strategies, plans and policies onprotection, exploitation, utilization and development of water resources;

• developing, disseminating and implementing legal documents, regulations and standardsrelated to water resources;

• preventing, mitigating and rehabilitating damages caused by floods;

• forecasting floods, drought and other damages caused by water;

• deciding on procedures for mobilizing labour forces, materials and machinery to prevent andrepair the consequences floods, droughts and other natural hazards;

• doing research and applying advanced technologies for water resource management;

• managing inventory surveys on water resources, and establishing a national database on

water resources;

• issuing and managing licenses for the use and exploitation of water resources;

• supervising and monitoring license implementation and applying administrative fines for violations;

• resolving disputes and grievances related to water resources; and

• fostering and strengthening international co-operation on water resources, andimplementing international laws and agreements relating to water resources to which VietNam is a signatory.

State management functions thus include policy and legislation development, data and informationmanagement, planning, water resource regulation, organization and institutional arrangements,education, awareness and consultation, and human resource development.

The primary planning and management unit for water resources in Viet Nam is established as theriver basin. Article 59 specifies that the National Assembly will decide on investment strategies for water resources works of national importance. The Government will approve planning of large river basins and important water projects. Article 64 provides for the establishment of river basinplanning and management committees (RBCs) as a vehicle for the management of river basins inViet Nam.

The law is a framework law. It provides a strong platform for integrated water resourcesmanagement, but its implementation is (or is being) detailed in decrees and other regulation.

Water rights and customary use of water

The Law on Water Resources provides the basis for a system of licenses and permits for surface

and groundwater allocation and wastewater discharges. Traditional water rights and customaryuses play a role in the implementation.

For example, a decree (179/1999/ND-CP) indicates that, under drought conditions, water will beallocated according to the following priority order: Minimum domestic needs, livestock andaquaculture, industrial and scientific needs, food security, crops of high economic significance, andother purposes.

Water-sharing is managed with a view to existing and reasonable water uses - which, in turn,requires knowledge about such uses, possibly involving a systematic registration.

According to traditional water rights, downstream landowners are not supposed to create damageto upstream landowners by blocking the natural drainage. Existing water users should not lose their access to water through the actions of new, upstream users. Such principles can, however, be

modified where water management and development plans have been developed and approved.



8

Water allocation and conflict resolution

At present, agriculture is the largest water consuming sector. This will remain the case, but thedemand of other, higher value water uses will increase. Practices are required for a gradual, partialreallocating.

Reservoir operation may also involve competition between flood control, where maximum availablestorage prior to the flood season is desirable, and tourism, where constant, high storage levels helpto provide aesthetic benefits.

Appeals to the Government over the allocation and management of water are common. Whereappropriate, cases are referred back to the provincial level for settlement. The National Water Resources Council and the RBCs also have a role in the resolution of water-related disputes.

National planning

Planning cycles comprise a 1-year cycle, a 5-year cycle, and a 10-years strategic planning horizon.The present national 5-years Plan for Socio-economic Development runs from 2006 to 2010.

The broadest level of national planning and strategy development is provided in the Government's

'Socio-Economic Development Strategy for 2001-2010.' A number of water-related strategies andobjectives are presented in that document, covering:

• Irrigation, drainage and flood control;

• aquaculture and aquatic environment;

• water supply; and

• regional development.

Also, the Strategy makes statements about water-related issues and development plans in specificregions.

The different ministries have, in most cases, prepared 5- and/or 10-years development plans for their respective fields of responsibility, as well as various specific, development-oriented master

plans.

The National Strategy on Water Resources (2006)

This strategy supports, among others:

• Increased investment;

• overhaul of financial mechanisms; and

• increased community participation.

Decree 120/2008

The Law on Water Resources promulgates the river basin as a management unit, with detailsprovided in a decree from December 2008.

Decree 120/2008

There are three classes of river basins (and RBCs):• Large rivers: RBC chaired by a vice minister of MONRE: Hong (Red)-Thai Binh, Bang

Giang-Ky Cung, Ma, Ca, Vu Gia-Thu Bon, Ba, Dong Nai, and Cuu Long (Mekong)• Rivers shared by more than one province: RBC chair rotated every 2 years between the

PPCs; planning to be guided by MONRE• Rivers within one province: RBC chaired by the PPCRBCs have participation by ministerial representatives, PPC delegates, and some large water users.



9

Chapter 3 of Decree 120/2008 addresses basin-level planning, covering

• Water allocation

• Water resources protection

• Prevention and mitigation of damages caused by water

Plans are prepared over a 2-years period and will cover an extendable 10-years time horizon.

According to Article 19, the plans will provide a reference for subsequent detailed sector planningby various line agencies:

Ministries, agencies and PPCs shall direct and organize the implementation of the river basin plan and adjust their strategies and plans if they are not consistent with the river basin plan

The planning is funded by MONRE for the large and inter-province river basins, and by the provincefor basins within one province. In all cases, MoNRE is responsible for the overall monitoring of planimplementation.

2.5 Policies and administration

The basin covers major parts of Quang Nam Province (92 percent) and Da Nang City, and a smallpart of Kon Tum Province.

National policy aims to develop the Quang Nam - Da Nang region as an economic hub of thecentral area of the country, with a diversified and balanced economic structure. Hereby, the gapbetween incomes of different classes in the society and between regions should be narrowed.Special consideration is needed to people living in remote and upland areas in order to help reduceand alleviate poverty.

The agricultural development is directed towards a fundamental shift from monoculture tocomprehensive agricultural production that focuses on commercial trees, food crops and livestockexpansion in accordance with the specific conditions prevail ing in the various parts. Agricultural

development will emphasize intensive and specialized farming, to meet the demand of theindustrial, tourism and export sectors as well as ensuring food security to the local population.

A master plan for Da Nang City and Quang Nam Province aims to make the province a prosperousindustrial centre. Emphasis is put on the development of industries that create added value and areexport-oriented, producing goods for consumption and export, such as construction materials,products based on agriculture, forests and fisheries, machinery, and electronics. The major part of this development will take part along the coast.

The management of rivers, streams and related basins is assigned to the local authorities based onadministrative boundaries.

The Department of Agriculture and Rural Development (DARD) carries out state management of hydraulic works planning for water resources exploitation for production and domestic use and flood

control in provincial basins. Since 2003, groundwater management and planning has beenassigned to Department of Natural Resource and Environment (DoNRE). State management of hydropower works planning in the river basin remains the responsibility of the Provincial IndustryDepartment.

At the province level, two key bodies are involved in water resources management: DARD andDoNRE. Following the Water Resources Law (2003), the water resources management function ingeneral belongs to DoNRE, with DARD undertaking certain state management functions.

In mountainous and rural districts, the Land and Economic Department undertakes themanagement functions for agriculture, rural development, natural resources and the environment,while DARD and DoNRE are involved in the town and delta districts.



10

Water-related development is coordinated by two bodies, which are presently being replaced by anew one:

• A Vu Gia-Thu Bon River Basin Organization (RBO) was formed in 2004 as a consultingagency. Its members are representatives from central and local governments anddepartments. They are involved on a part-time basis only. The RBO has no executive

power, but it may influence the decisions of the Government and the Provincial People’sCommittees (PPCs) through its recommendations.

• A Committee for the Management and Control of Integrated Water Resources (CMCIWR) of the Vu Gia Basin was established in 2007 by the Quang Nam Provincial PeoplesCommittee.

• Decree No. 120 about river basin management (December 2009) will create a newcoordination body for the entire basin, under the authority of the central government.Guidelines for its implementation are in preparation. It is expected that the tasks of the twoexisting coordination bodies will in some way be carried forward to the new one.



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3 Zoning for development

This chapter summarizes the development agendas in different parts of the basin.

3.1 Overview

The basin can be divided into zones with partly different development needs and opportunities. Byorder of the river flow, these are:

• The mountainous uplands

• The central parts (hilly midlands and lowlands)

• The river mouths and the coastal zone

• Da Nang City

Certain general developments span across the zones, as summarized in the table below.

Table 2: Overview of development needs and opportunities 8

General needs and opportunities Water security: Safe water and sanitation, water for cultivation and other production, consolidation of sustainable livelihoodsA healthy river basin: Wastewater and solid wastemanagement, water qualityTourism and recreation

The mountainous uplands Flash flood mitigationHydropower, water storage and reservoir operationLand managementRural livelihoods developmentCommunity-based tourism

The central parts of the basin Agricultural productivity, agricultural value chainsAquatic habitats, environmental flows, connectivityDrought managementFlood protectionGroundwater developmentMorphological managementWater storage and allocation

The river mouthsand the coastal zone

Aquaculture productivity and sustainabilityMangroves, wetlands, aquatic habitatsFlood protection and typhoon preparednessSalinity controlMorphological management

Da Nang City Flood protection and saline intrusionRaw water availability

Governance Knowledge base consolidationInstitutional capacity-building for IWRM-based river basinmanagementComprehensive, IWRM-based, basinwide developmentplanning

8 Compiled during the 5th and 6th NARBO training sessions in Hoi An (Feb 09) and Da Nang (Dec 09) (both of which had the VGTB Basin as the general case study)



12

3.2 Basinwide aspects

The zones are closely connected by cause-effect relationships. Upland land use can affect thedownstream flood risk, and downstream economic growth can provide livelihoods for people fromthe entire basin.

Basinwide aspects include

• water security:

• sustainable livelihoods; and

• a 'healthy river basin'.

For some time, the economy has seen a structural change in the direction from traditionalagriculture to industry and manufacturing and further to the service sector. This requires asupportive water resources allocation, reflecting new demands while respecting traditional ones. Inthis connection, the water efficiency must be enhanced in all sectors, aiming at higher outputs per m3 of water in the short term, and higher value generated per m3 in the longer term. Improvedstorage capacity can facilitate the development.

The potential for economic development is enhanced by rich resources and by excellent transportconnections, nationally and internationally, by land, air and sea.

The East-West Economic Corridor

The East-West Economic Corridor was conceived in1998 by the Greater Mekong Sub-region (GMS)collaboration body.Once completed, it will span a distance of 1,450 kmbetween the port of Mawlamyine in Myanmar and theport of Da Nang, passing a string of towns such asPhitsanulok and Khon Kaen in Thailand, Savannakhetin Laos, and Dong Ha and Hue in Viet Nam. It will bethe main land link between the Indian Ocean and theEastern Sea.The eastern part of the corridor became operational inlate 2006.

Water security

Water security in the Vu Gia-Thu Bon Basin involves the following concerns: 9

• Safe water for households;

• water for production and livelihoods;

• storage capacity;

• morphological management; and

• flood and drought management.

Many households, both in rural and urban areas, lack access to clean water. In rural areas, about74 per cent of the population use water from rivers, streams or from unhygienic sources. In areasaround Da Nang and Hoi An, only 60-70 per cent of the population have access to piped water.

The water can be contaminated by leakage of sewage from households and production, and (near the coast) by saline water.

Da Nang City is affected by a limited raw water availability in a part of the year.

9 Pham Phuoc Toan (Dec 10)



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A healthy river basin

The agenda for a healthy river basin includes

• the forests;

• surface water quality and aquatic habitats;

• river connectivity; and

• the mangroves.

These aspects are discussed in Chapter 5.

3.3 The mountainous uplands

Whole section extracted from WWF (Nov 05). The analysis relates to the entire Quang Nam Province, parts of which are outside the Vu Gia-Thu Bon Basin.

Poverty and vulnerability

Poverty remains critical in Quang Nam Province, particularly in the mountain districts and among

ethnic minorities.

Poverty levels in the province correspond closely with elevation. The average poverty rate in themountain districts is 35.5%, and in two districts the rate is over 50%, well above the provincialaverage of 14.2%. One of every five households in the mountain districts faces a grain shortagefrom 3 to 6 months of the year. High poverty levels also correspond with ethnicity. Rough estimatessuggest that ethnic minorities account for 70% to 90% of the total number of poor households in theregion.

Poverty in the mountainous region is largely attributable to the poor conditions for agriculture:Scarcity of arable land, steep slopes, and ongoing soil erosion. The average area of paddy rice landper capita in the uplands is only 204 m2, compared with 376 m2 in the rest of the province.

Table 3: National poverty rates

2007 2009 2011

VND USD USD PPP VND USD USD PPP VND USD USD PPP

Urban 260,000 16 53 390,000 24 63 500,000 26 71

Rural 200,000 13 41 300,000 18 49 400,000 21 57

Notes: Values are income per person per month USD: Converted by the average interbank exchange rate for the previous year USD PPP: Converted by purchasing power parity for the previous year Urban people with incomes between 501,000 and 650,000 VND/person/month will be classified as almost poor in 2011Rural people with incomes between 401,000 and 520,000 VND/person/month will be classified as almost poor in 2011Poverty rates from Viet Nam News 23 Sep 10, quoting prime minister Nguyen Tan Dung Average interbank rates for the previous year from www.oanda.com

PPP conversion rates for the previous year from www.econstats.com (IMF data); the 2010 value is estimated

Sloping land, unsuitable for paddy rice, makes up 60-90% of arable land in the region. Agricultureon these slopes is very vulnerable to weather, such as heavy rains, and soil erosion, which greatlyincrease the vulnerability of these communities.

Loss of forest cover contributes to this vulnerability by increasing soil erosion and exposure of hillside crops to rain and drought. Swidden agriculture has traditionally been practiced by theupland communities on the sloping land in Quang Nam, with a fallow period of 10 years and littlepopulation pressure until recently. Now, however, population growth, migration, migrationrestrictions, and greater enforcement of forest protection put pressure on traditional farmingmethods. In response, fallow periods have been shortened, and soil degradation greatlyexacerbated.



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In addition to subsistence agriculture, the upland communities, particularly the ethnic communities,depend heavily on the forest for food, shelter, fuel, medicine and other products, some of which canbe sold to generate income.

Non-timber forest products (NTFP)

NTFPs include rattan, honey, fruits, and vegetables, as well as firewood.Because communities have had very little control over forest resources, rapid exploitation of both timber and NTFPs by outsiders has reduced the goods and services that could benefitlocal communities.Nevertheless, these forest resources continue to provide an important safety net for localcommunities when crops are lost or other calamities strike.

Environmental vulnerability and conservation priorities

Major threats to the mountain region’s natural resources, particularly the remaining native forestsand biodiversity, include agriculture, hydropower dams, road construction, poaching, collection of NTFPs and illegal logging, according to provincial authorities:

• Agricultural land is very vulnerable to erosion and landslides. Most arable land in themountain districts is on steep slopes, averaging 25-30 degrees. The limited flat arable land,which has potential for irrigation in these districts, is critical for the expansion of paddy rice.However, this land is located close to rivers and streams, making it subject to flooding andlandslides. At present, only 2,794 ha are paddy rice in these districts; an estimated 3,500 haof this land has been abandoned since 1995 because of natural disasters.

• Water resources in the province face major threats from land-based activities includinginfrastructure development. The construction of dams and the loss of forest cover due toroad construction threaten water quality and may affect seasonal availability

• Gold mining is increasing in the region, which also contributes to water contamination, whichmakes irrigation less feasible.

• Illegal logging, extraction, and hunting, including inside the Song Thanh Nature Reserve, iscommon. About 2,500 cases of forest poaching and illegal trafficking in timber and forestproducts were reported annually by provincial authorities from 1997-2002. Since manycases are not identified, the total is much larger. Many rare and endemic species are huntedand logged illegally.

These threats are compounded by weak provincial and district-level capacity for environmentalmanagement. At the provincial level, several departments have environmental responsibilities.DONRE has overall responsibility for the environment and takes the lead on land-use planning.DARD has a role in promoting sustainable use of land and water resources. The Forest ProtectionDepartment (FPD) is the enforcement agency protecting the forest against illegal use andconversion. These departments have functioning bodies at the district level in most instances.However, the division of functions and responsibilities among these district-level bodies is often

unclear.

Conservation of biodiversity in the region depends on protection of the remaining native forests.

The Central Truong Son Biodiversity Conservation Initiative was approved by the Government of Viet Nam in 2003 to ensure effective conservation of Viet Nam’s biodiversity. The initiative definesregional conservation priorities for the next 20 years for a 6-province area, including a fairlyextensive area in Quang Nam. More recently, in 2005, the provincial government has establishedconservation priorities (the Quang Nam Biodiversity and Natural Resource Conservation Strategy)with collaboration by WWF, which more accurately reflect conservation opportunities in QuangNam’s part of the Central Annamites.



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Special use forests (protected areas) in the basin

Ngoc Linh (Kon Tum) Nature Reserve

Area: 41,420 ha, of which about 36,453 ha is forest.The area consists of lower montane evergreen and upper montane evergreen forest. It

includes Ngoc Linh Mountain, the highest mountain in the Central highlands at 2,598 m.The reserve is home to at least 878 plant species of which 19 are listed in the IUCN Red Listand 34 listed in the Red Data Book of Viet Nam. 52 species of mammals are reported,including two recently discovered Truong Son endemics, the giant barking deer and thetruong son barking deer. 190 species of birds are recorded, including 10 on the IUCN RedList and two new endemic species known only from this area: The golden-wingedlaughingthrush and the black-crowned barwing.The reserve covers the headwater area above the Dak Mi hydropower cascade in QuangNam, as well as the headwater area of the Ya Ly hydropower station in Kon Tum. (The NgocLinh Nature Reserve (Quang Nam), with an area of 18,430 ha, extends this area to cover thewestern part of the headwater area of the Song Chanh hydropower cascade).Song Thanh Nature Reserve

Area: 93,249 ha of which 88,879 ha is forest.

The reserve covers a large part of the Vu Gia river basin. It borders Ngoc Linh (Kon Tum)Natural Reserve to the south, and forests on the Laotian side of the border to the west. It isone of the largest areas of contiguous forest cover in Viet Nam.The area contains of remnant lowland forests as well as significant areas of lowland hill andmontane forest. 831 plant species are recorded of which 23 are endemic to Viet Nam; 49 arelisted either in the IUCN Red List or the Viet Nam Red Data Book. 53 mammal species arerecorded of which four are endemic to the region: Two species of douc langur and twospecies of barking deer.The proposed Ngoc Linh Nature Reserve

Area: About 18,430 ha of mostly upper montane forest.This is generally regarded as the highest priority for additional conservation measures inQuang Nam, both for reasons of habitat and wildlife protection and because of its headwater protection functions for the Song Tranh hydropower cascade.It has a high botanical diversity, including several endemic plant species. Also its it is home to

several endemic wildlife species.The proposed Western Que Son Conservation Area

Area: 43,520 ha of forest (including 23,200 ha of lowland forest)Located west of the Thu Bon River, this area holds the largest and most intact area of lowland forest in Quang Nam.It is home to a small group of the highly endangered Asian elephant, as well as seven other globally threatened mammals (including one of the largest remaining populations of the grey-shanked douc Langur), and at least five other vertebrate species and nine plant specieslisted of conservation concern.The area is of critical importance to the hydrology of the river basin. The 9 MW Khe Dienhydropower station is located in the area.

Source: ICEM (Jan 08)

The figure below shows three levels of conservation priorities set by the initiative: First-levelpriorities include existing protected areas, including Song Thanh and the proposed Ngoc LinhNature Reserve in Quang Nam; second- and third-level priorities include the extension of protectedareas and the establishment of corridors linking protected areas to form broader conservationlandscapes.



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Figure 5: Conservation priorities

Agriculture and rural development policies Major policy changes have reshaped the agricultural sector in recent years. In the late 1980s, ashift toward markets boosted production and food security. The initial policy focus was on meetinglocal food needs; agricultural growth stemmed from improved productivity and increased use of fertilizers and chemical inputs. Beginning in the mid-1990s, the national policy focus shifted todevelopment of a market-based, industrialized agricultural sector. This change is reflected incurrent polices designed to diversify and intensify agricultural production; increase investment inirrigation and extension services; and promote forestry and agroforestry.

The following sections discuss the impacts of some of these policies on the vulnerable people andecosystems of Quang Nam.

Increasing paddy rice production

Decision-makers at the district and provincial levels generally agree that the key to tackling hunger in the mountainous regions is to increase paddy rice production. The tools for increasing paddyproduction are financial support for land conversion, expansion of irrigation, and extension services.

From 2001 to 2003, the area in paddy rice increased by 534 ha in the six mountainous districts, andper capita production increased. However, the increase in paddy rice has not reduced thedependence of many poor households on use of sloping land for upland rice, nor improved their food security.

The explanation for this lies, at least in part, in the fact that paddy rice area is not evenly distributedamong households. The promotion of land conversion for paddy rice and the emphasis onincreasing productivity raise concerns about soil erosion, consequential siltation, and water demand. Flat land suitable for paddy rice is found primarily near rivers, and plays an important rolein protecting river banks from erosion. A study of water resources in Quang Nam (DONRE-WRMI

2003) found evidence that rivers had been straightened in several places, increasing the velocity of the flow and causing severe erosion of the river banks. The ironic result of this erosion is the loss of the flat land suitable for paddy production.

Proposed dams

Rivers

Main roads

Urban areas

Existing protected areas

Priority 1 areas

Priority 2 areas

Source: WWF (Nov 05)



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A second concern raised by the expansion of paddy rice is the increased demand for irrigation,which could lead to the construction of more dams and reservoirs.

Currently, no environmental guidance is attached to financial support for land conversion.

Promotion of cash crops Crop diversification has taken place in many parts of Quang Nam. In the lowland region, farmerswere encouraged to reduce the number of rice crops per year, in favor of mixed crops of rice, maizeand beans. Increased production of these crops is unlikely to promote poverty alleviation in QuangNam, however. First, expansion of these crops took place almost exclusively in the lowlands.Second, the high input costs and increased risks associated with their production make themunattractive to the very poor.

Irrigation development

Irrigation is one of the key services for development of paddy rice. Substantial investments inirrigation for the midland and mountainous regions of the province have certainly contributed to theincreased production of paddy rice and improved food security. Some 70 irrigation projects wereplanned for 2004, primarily small-scale dams each serving 5 to 10 ha of paddy rice.

However, irrigation does not serve the hillside crops – upland rice and maize – that make up thebulk of the food basket for the upland poor. Since only a small fraction of the upland population hasaccess to paddy land, many mountain communities, particularly those with large ethnic populations,are unlikely to benefit from irrigation investments. In terms of the environment, it is difficult toforesee the impacts of new irrigation investments, given limited information on both theenvironmental impacts of existing dams and the region’s aquatic biodiversity.

Provision of agricultural services

Government provision of inputs and training are intended to boost agricultural productivity. Effectiveextension services could substantially reduce the vulnerability of the poor by introducing cultivationskills and reducing the risk of crop loss. However, current efforts are not very effective inaddressing the needs of the upland poor:

(1) The extension service in these districts is underfunded and lacking in capacity;

(2) extension is primarily targeted to the lowlands, rather then to those in greatest need;

(3) new crop varieties have been introduced without regard for the ability or interest of farmersin adapting to new agriculture techniques; and

(4) the extension service has emphasized productivity rather than sustainability. Environmentalproblems associated with agricultural production - including problems of production on steepslopes, soil erosion, and the high levels of pesticide and fertilizer required by the newvarieties - have been largely ignored.

Conclusions

Sustainable use of land, water, and forests are crucial for Quang Nam’s economic developmentand poverty alleviation, particularly in the mountainous region where subsistence agriculture andforest products are central to the livelihoods of the rural poor.

The Quang Nam Biodiversity and Natural Resource Conservation Strategy (2005-2020) clearlyidentifies the conservation priorities for this region of the province. These priority places alsoprovide the environmental resources and services that are critical for the large impoverishedpopulation of the region. Agricultural development policies and forest management policies to date,many of which are ongoing, have not addressed the requirements of sustainability or povertyalleviation for the most vulnerable populations in these vulnerable places.



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3.4 The central parts

These parts of the basin comprise hilly areas as well as alluvial flood plains. They arecomprehensively inhabited and cultivated.

With regard to flood control, most reservoirs are built on tributaries and have small storagecapacities, as their main purpose is irrigation; thus, they are not effective in flood control. Annuallosses caused by floods and inundation amount to between Dong 220 billion and Dong 758 billion.Drought and salinity intrusion are frequent. Existing hydraulic structures are mainly pumpingstations and weirs, except for the Phu Ninh reservoir with its relatively large capacity. Other reservoirs have limited capacity so they cannot supplement irrigation water in the dry season. Thatis why drought and salinity intrusion frequently cause serious losses and affect human life in manyways.

In response, a comprehensive flood protection project (covering Quang Nam Province) is beingimplemented with support from JICA, covering structural as well as non-structural measures. 10

Erosion and sedimentation cause losses of cultivable land and property as well as changes in river flows and increased flood risk. The erosion is partly generated by occasional flash floods.

Figure 6: Sand extraction

The development agenda in this area includes

• agricultural productivity; irrigation efficiency; agricultural value chains in support of revenue

and livelihoods;• preservation of aquatic habitats; maintenance of environmental flows; maintenance of

connectivity between river branches;

• drought management: Strategic preparedness and operational contingency capacity;

• flood protection: Strategic preparedness and operational contingency capacity;

• groundwater development as practical and feasible;

• morphological management: Bank protection; maintenance of river planforms and flowcapacity/flow resistance; and

• water storage and allocation: Capacity and operation.

10 Implementation from 2009 to 2012



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3.5 The coastal zone

The major towns are located near coast or not far from it. Most of the population live near the coast,and most of the economic activity takes place here. There is agriculture, manufacturing, industriesand service business (including tourism). Aquaculture (including shrimp farming) is another economic activity near the coast, as is salt production. 11

Figure 7: Nipa mangroves at Hoi An

The area has a dynamic river morphology and coastal morphology, with erosion andsedimentation, affecting the planform of the rivers, the flow resistance and flood risk, and the

coastline itself. The area has been shaped by river sediments, but also by coastal processes, whichhave expanded the coastline in the course of time due to littoral drift and coastal accretion,generating wide areas along the coast with sandy soils.

Apart from flooding of inland origin, the coastal zone is exposed to tropical cyclones (typhoons) withextreme wind speeds, rainfall and storm surge. These can cover large reaches of the coast with atime scale of hours (for wind and storm surge) and days (for rainfall). (In comparison, inlandextreme rains are caused by thunderstorms, often with a time scale of minutes or hours).

Table 4: Examples of extreme rainfalls

Place Date Rainfall

mm/24 hours

Da Nang 3 Nov 1999 530Giao Thuy 3 Nov 1999 841

Hoi An 3 Nov 1999 667

Son Tan 26 Nov 2004 527

Que Son 3 Dec 1999 472

Kham Duc 29 Oct 1996 531

Nong Son 31-Oct-1983 513

Hien 17-Sep-1980 482

Source: Huynh Van Thang (Nov 09)

11 Salt production is a marginal activity, occupying just 30 ha (or 0.001 percent) of Quang Nam's area (2007)



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The development agenda includes

• aquaculture productivity and sustainability; water quality management; management of freshwater and brackish regimes;

• soil conservation (in cultivated areas): Salinization, acid soils;

• preservation of mangroves, wetlands and aquatic habitats;• flood protection and typhoon preparedness: Strategic preparedness and operational

contingency capacity;

• salinity control (and/or operational adaptation capacity) at river mouths; and

• morphological management of river mouths and the coastline itself.

3.6 Da Nang City

This section is comprehensively based on Doan (Feb 09) and Le Duy Vong (Dec 09), except where otherwise indicated.

Da Nang is one of Viet Nam's 5 province-level cities. It was separated from Quang Nam Province

by administrative reform in 1997. It is the biggest city in the Vu Gia-Thu Bon Basin.

Geography

Geography: The area of Da Nang City is 1,255 km2, including Hoang Sa Island District of 305 km2.The Bach Ma mountain range is in the North and West, with average altitudes of around 1,000 m;next to the mountains is the upland with low mountains. The Delta occupies a quarter of the area tothe South.

Climate

The climate is of the tropical monsoon type, with abundant radiation and sunshine. The temperatureis normally high and rainfall is plentiful. There are two distinguished seasons: The rainy seasonfrom September to December and the dry season from January to August.

The average rainfall in Da Nang is 2,185 mm/year, in Tien Sa it is 2,456 mm/year, and higher in themountains.

The gross annual radiation is 148 kcal/cm2. The total average sunshine hours is 2,272 hours/year,and the average evaporation is 1,048 mm/year.

The average annual temperature is 25.6 deg. C, the highest temperature was 40.0 deg. C and thelowest 9.2 deg. C. The average moisture is 82%.

Hydrology

Within the city’s territory, there are 4 large rivers, of which 3 are in the northern part of the Vu Gia-Thu Bon Basin: Vinh Dien, Yen and Tuy Loan. All of them run to Han river before discharging intoDa Nang Gulf at the Han river mouth.

The city is topographically divided between two river basins: Cu De Basin to the North and the VuGia-Thu Bon Basin to the South. The area of Cu De River Basin is 472 km2. 6 out of 8 districts arein the Vu Gia-Thu Bon Basin, accounting for 60 % of the area. Therefore, this basin plays animportant role in the City’s development.

The tidal regime is mixed diurnal-semidiurnal (daily/half-daily), with between 1 and 8 diurnal (daily)tidal days in a month, with an average of 3 diurnal days per month. The tidal amplitude at Da Nangport is 70 cm in average with a peak tide of 140 cm.

Population

Da Nang City has 6 urban and 2 rural districts with a steadily increasing population of 850,000persons (2008). The population density is 677 persons/km2.



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Economy

In 2007, the sector structure was as follows: Agriculture 3.9% of the city’s GDP, industry andconstruction 44.5% and services 51.5%.

Water availability

The total incoming water volume of Da Nang City is about 8.3 billion m3 a year, of which 7.6 billion(or 91 percent) is from the Vu Gia-Thu Bon Basin The total utilized surface water was about 200million m3 a year, or 2.6 percent of the average total surface water flow. There is a significantseasonality, with 8 dry months providing 20-35% of the volume. This causes frequent droughts,saline intrusion and flash floods, and constrains the socio-economic development.

The groundwater availability is estimated at 276,000 m3/day, of which 75,000 m3/day is utilized(2000). The groundwater quality is affected by salinity and high contents of minerals, so surfacewater remains the key source for domestic, industrial and agricultural supplies in the city.

Domestic and industrial water supplies

The average domestic water use is 133 l/person/day.

The city’s water supply system currently exploits about 132,500 m3/day to serve domestic andindustrial demands. Supplies are made by the Cau Do water plant and airport which provides130,000 m3/day, taking water from Yen River, downstream Yen river and Tuy Loan river. The HoaKhuong water supply station provides 1,770 m3/day, taking raw water from Yen River and theupstream An Trach Dam. The Hoa Quy water supply station provides 730 m3/day and is based ongroundwater.

Supplies are affected by insufficient processing and distribution capacity. 37% of the population inthe inner city and 45% in rural areas lack access to clean water. In 2015, Phase II of the City Water Supply Project will be completed, adding a capacity of 120,000 m3/day and increasing the totalcapacity to 325,000 m3/day.

Figure 8: Water intakes for Da Nang City

Source: MONRE (Jan 08)



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Figure 9: The Cau Do Water Plant

Table 5: Water demand in Da Nang City

Water demand 2010 2020

Total 691 million m3 1,030 million m3

Agriculture 526 million m3 462 million m3Domestic and industry 165 million m3 568 million m3

Unit demand standards 2010 2020

Urban areas 150 l/person/day 350 l/person/day

Rural areas 120 l/person/day 300 l/person/day

Drought and saline intrusion

In the dry season, from March to August, with sunshine and hot weather, the southwesterly windsdry up the rivers, streams, lakes and ponds and lower the groundwater level. The saline intrusionborderline extends to 19 km in the Vinh Dien River and 12km in the Cam Le River. This causesdrought over a large area and water shortage for both irrigation and domestic supplies in someareas in the city.

Development needs

The socio-economic development of Da Nang City is clearly described in a resolution with the major development targets and a shift from “Industry-Services-Agriculture” towards “Services-Industry- Agriculture”.

From 2006 to 2010, GDP growth is expected at 14%, with 22% growth in industry, 12% in servicesand 5% in agriculture. This requires effective water resources management and water supplies toall uses and all sectors. The specific targets are provision of irrigation for 5,000ha of paddy fieldsand 3,000ha of subsidiary and upland crops; water for 2,000ha aquaculture; and 45,000 m3 of water for domestic and industrial activities by 2015.

At the same time, environmental flows must be maintained in the river branches to develop tourismand protect the environment. According to water resources development and protection planning of



23

the Vu Gia-Thu Bon Basin, the Q90% flow targets are 32,5m3/s at Ai Nghia and 51 m3/s at GiaoThuy.

In response to these requirements, effective water resources planning, development and utilizationin the Vu Gia-Thu Bon Basin are considered urgent, necessary and decisive to the city’s economicand social development. The following measures are proposed:

• Making a plan for headwater forest protection and development, planting on bare lands incombination with implementation of afforestation projects to protect the headwater forestsand reservoirs.

• Effective exploitation of existing works and construction of new hydraulic works, particularlyreservoirs - including construction of the Trung An reservoir.

• Continuing the implementation of canal concrete lining, investment in upgrading small-scalehydraulic works, and improvement of irrigation systems, to ensure water saving and safety inthe flood season.

• Making river basin flood protection to fix the basin flood features.

• Integrated water resources exploitation planning for the basin.

• Preparation of investment projects on protection of the stability of the rivers such as river training, dredging, and bank protection construction; and coordination with DONRE inplanning and regulation of sand and gravel exploitation in the rivers.

• Water pollution protection planning, prohibition of disposal of toxic substances and untreatedwastewater according to applicable environmental standards.

3.7 Knowledge base and IWRM framework

Knowledge base

Good decisions require a suitable knowledge. While knowledge is never perfect, most river basinsare in permanent need of improved knowledge about

• off-stream water demands (which change continuously): Urban and rural, for households,

cultivation, production and other purposes, actual as well as potential, and present as wellas future;

• in-stream water demands, such as environmental flows;

• water quality (which is difficult to monitor, due to a high natural variability in time and space);

• disaster and climate change risks and vulnerabilities;

• water-related cause-effect relationships in general; and

• water-related management options in general.

In the Vu Gia-Thu Bon Basin knowledge about groundwater is sparse.

A substantial part of this knowledge exists, but is fragmented and not readily accessible to those

who need it.

IWRM framework

A new RBC will be established according to Decree 120/2008. It will serve as an advisory body withresponsibilities for water-related coordination and development planning.

It is expected that it will support

• knowledge-sharing within the basin and among sectors;

• inter-sector dialogue and inter-sector development synergies and added value, such asmultiple uses of reservoirs (for hydropower, water supplies, maintenance of minimum flows,flood mitigation and drought mitigation, as practical from case to case);

• balance (and mutual synergies) between generation of economic revenue, social benefits

and environmental benefits; and



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• a reasonable balance between short-term and long-term benefits (for example with regard toforestry and resource utilization).

Important management issues in the Vu Gia-Thu Bon Basin

Environment: Water shortage in dry season, low water levels

Pollution of surface and underground water Water sources downstream of Thu Bon river decreasingIndustrial wastes - heavy metal and chemical pollution increasingHigh sedimentation loads due to deforestationSalt intrusion in dry season - increasingTraditional practices and sustainable use braking downAbundant and diversified fauna and flora deterioratingHigh level and increasing risk of erosion

Economics: Intensive fishing leading to reduced catch per unit effort

Pollution effecting aquatic habitatsSoil erosion in upland agricultural areas, agricultural land degradation indownstream areas, acidic soilsUse of fertilizers and pesticides causing pollution of soil and water Only 55% of irrigation demand metLack of water supply for residential areasLack of attention to systematic basinwide management and utilization of hydropower projects, lack of coordination among sectorsLivelihood of many households depending on forest resource and forestproductionHousing space fragmented, ribbon development, lack of associated infrastructurePoor quality of local roads, many roads blocked, lack of roads to communecentres

Concentration of development within the basin - remote regions for raw materialextraction and processing plantsIncrease of waste loads

Social: Poor labour force quality/trainingDependence on swidden agriculture, forest products and fishing in riversHigh poverty rate

The list above was prepared by a workshop in Tam Ky in November 06 with participation by provincial and district authorities from Quang Nam and Da Nang. During the workshop, 80 issues of relevance to overall socio-economic development of the Vu Gia -Thu Bon River Basin were identified. Issues listed above were given a significance ranking above the median (higher than 5). Please refer to Appendix B for the entire table of all issues, including those that were given a lower ranking.


Comprehensive, inter-sector basin-level development planning is a useful tool for suchmanagement tasks. Such planning is prescribed in Decree 120/2008, with detailed specifications of contents and formulation process.

The Vu Gia-Thu Bon Basin is classified as a 'big river basin', so responsibility for the planning iswith MONRE. The new RBC will be heavily involved, though.



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River basin planning

Decree 120/2008, Article 10:

1. River basin planning comprises the following planning components:a. Planning on allocation of water resources;

b. Planning on protection of water resources;c. Planning on prevention, control and mitigation of harms caused by water.

2. A planning component may cover the whole basin, or one or several sub-basins.

Decree 120/2008, extracts from Article 17:

1. a. MONRE shall formulate planning tasks and drafts for big river basins and inter-province river basins.

2. Draft river basin plans must be commented on by concerned ministries, branches,localities and economic entities involved in water exploitation and utilization, or wastewater disposal, and representatives of communities living in the area, before theyare submitted to the competent authorities for consideration and approval.

4 Sectors of the future

This chapter elaborates on some sectors that are expected to remain significant in the time to come, in terms of economic revenue as well as livelihoods and social welfare.

4.1 Agriculture and aquaculture

These sectors are not merely sectors of the past. The provide national food security and export

potential, as well as livelihoods, and will remain a cornerstone of the economy (and of socialwelfare) in the basin.

Agriculture

In 2005, agriculture occupied 266,200 ha (23%) of the basin. The sector provides 50% of thelivelihoods. 12

The area available for irrigation within the basin is nearly fully developed. By 2005, a commandarea of 71,000 ha (27% of the agricultural land) had been developed. Of this, the actual area that isactually irrigated is 57,200 ha (81% of the irrigated area). The difference between the two figures isdue to a variety of reasons including

• unavailability of water in the dry season due to insufficient reservoir capacity;

• salinity intrusion into lower areas rendering the raw water unsuited for cultivation;

• poor water distribution; and

• poor management and maintenance of irrigation structures and equipment.

In the dry season, water for irrigation is limited or unavailable.

Rice is the main crop. Irrigated and dry rice occupy 30% of the cultivated area (followed by annualcrops 23%, tree crops 2% and aquaculture 0.1% ).

Irrigated rice is normally grown in terraced flood irrigation systems in the lower areas of the Vu GiaThu Bon basin. Rice used to be grown as 3 crops per year but this has now been changed to 2crops/yr in order to improve the cultivation reliability by reducing the dependency on dry season lowwater flows. In 2005, the two-crop system comprised 40,862 ha of winter-spring rice while the

summer-autumn crop area was 42,805 ha.

12 Entire section extracted from ICEM (Jan 08)



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The overall yield is 5.1 t/ha per crop. 13 To obtain these high yields farmers use high yield irrigatedhybrid varieties, together with high inputs of fertilizers and agro-chemicals.

Maize is the second main annual crop and in 2005 10,600 ha were grown. Yields have increasedfrom about 1.8t/ha to 3.0t/ha. Maize is often grown as an intermediate crop between rice crops andis supplemented by irrigation water if this is available. Other crops that are grown as rainfed cropsbut have lower yields than irrigated crops include maize, cotton and beans.

Rainfed upland rice is grown as 2 crops per year.

Intensive livestock raising of cattle, pigs and poultry is also an important part of the agriculturesector. Buffalos continue to be used for traction but are being progressively replaced by small walk-behind farm tractors.

Three types of irrigation systems are used:

• Reservoirs: There are 63 irrigation reservoirs, located in the upstream tributaries of Vu Giaand Thu Bon.

• There are 589 irrigation weirs, which are mainly located in the tributaries of the Thu Bon.

• Pumps: There are 148 pump irrigation systems which are mainly located in the lower sections of the Vu Gia and Thu Bon and may be situated on both the tributaries and themainstream. Of these, about 80 are medium and large pumping stations with a designcapacity of 6,500 ha, serving an actual irrigation area of 4,300 ha. Besides, about 50-60smaller pumping stations are located along the Vu Gia and Thu Bon rivers.

Irrigation efficiency and supply reliability

Irrigation structures have not yet met production requirements. Their efficiency is low, non-irrigatedareas are still large, and drought occurrence is relatively frequent, affecting the production.Reasons for the low efficiency include:

(a) Out-of-date irrigation techniques (mainly flood irrigation), and regulators and distributionstructures that are inefficient or manually operated;

(b) incomplete schemes, where headworks and main canals have been completed while the on-farm canals and on-canal structures are incomplete. Some structures occasionally causelocalized inundation;

(c) degraded structures. Most hydraulic structures in the basin are small and medium-scale,having been constructed 10-20 years ago. Many headworks have deteriorated and irrigationcanals are silted up, resulting in erosion and sedimentation each flood season. Therefore,they cannot meet the design flows;

(d) management issues such as irrational water allocation and management, which causewastage of water, and poor operation, maintenance and management that results indeterioration or untimely repairs; and

(e) water sources. Water supplies are sometimes insufficient for structures in the Ly Ly andWest Que Son sub-basins. On the plains, water sources usually suffer from saline intrusion,so pumping stations on the Vinh Dien and Ba Ren rivers have to stop working. Some other pumping stations are unable to perform at full capacity due to low water levels.

Policy implications

Below are listed some general policy implications, in random order, as applicable from case tocase. 14

• Efficiency improvement is a general aim, considering the need to improve the income of the farmers, in an increasingly competitive environment, while, at the same time, producingmore food with less water. This comprises the water efficiency - ton per m3 of water output -as well as the economic efficiency - value generated per m3 of water.

• Another important aim is livelihood generation, expectedly mainly outside the farms, butpreferably including rural livelihoods, in order to reduce the rate of (an unavoidable and

13 Up from 4.6 t/ha/crop in 2005; figure from Huynh Van Thang (Nov 09)14 Entire section quoted from Thi Thanh Van Ngo (Apr 10)



27

possibly eventually beneficial) urban migration. Towns must grow, and will, but best at a ratethat allows for facilities, infrastructure and services to grow accordingly.

• A value chain perspective can support generation of revenue and livelihoods, for exampleby encouragement of agro-processing, including innovative products, and partly undertakende-centrally by small and medium enterprises.

• Branding of products and related marketing can, sometimes, add attractive value at amoderate cost.

• Gentle, pro-poor market regulation can be applied in support of shifting to new products(perhaps biofuel), and in support of a common national aim of affordable food prices while atthe same time maintaining an income of the farmers that at least exceeds their productioncost. A high predictability will support the intended outcome and reduce the risk of adverseeffects.

• Credit, including (but not limited to) micro-credit, is a general precondition for investmentand innovation. Some kind of risk insurance can make it possible for the farmers to keeptheir land in case of emergencies.

• Water uses must be regulated. There is a particular scope for strict regulation of new,water-dependent industries, because these can adapt more easily than existing ones with

older technology - and sometimes even saving water, energy and money at the same time.The regulation must cover both surface water and groundwater.

• Disaster preparedness (for floods, drought and pests) must be in place.

• Organization of farmers (like in water user groups) can facilitate efficiency improvements,other kinds of technological development, and access to markets.

• Interaction must be maintained between development of irrigation and cultivation.Upgrading one without upgrading the other is not optimal. An integrated (IWRM) approachcan highly increase the returns on the efforts.

• Soil management will become more important (and the benefits more visible) when water issparse and in connection with diversifying the cultivation on lands that are not well suitedcrops other than rice.

• Use of pesticides must be kept at acceptable levels, supported by education andawareness campaigns and supportive extension and weather forecast services.

• Continued research is required, including international networking, knowledge-sharing andactive collaboration. Results must be made available to the end users by pilot anddemonstration activities, well functional extension services, and networking among farmers -possibly across borders.

Agricultural development must be cautious and gradual. There is always a risk of unforeseenadverse side effects when implementing new technologies, and even when implementing existingand well proven technologies in new places. If everyone grew water melons the market would fail.

Aquaculture

Aquaculture is practised in freshwater and brackish regimes of the basin. The area, presently

around 7,000 ha

15

is increasing by 7 percent per year:• Brackish water (mainly prawns): 2,000 ha, producing around 8,500 t/year; and

• freshwater (fish): 5,150 ha, producing 11,000 t/year

Processing capacity increases from year to year, and so does the export value. The export value of aquaculture is over 30 million USD, or 30 percent of the total export value of Quang Nam Province.

15 Figures in this section refer to Quang Nam Province and not the Vu Gia-Thu Bon Basin; while there is not muchaquaculture in the basin outside this province, there is a substantial aquaculture in the province outside thebasin



28

4.2 Storage capacity and hydropower

The basin has a rich hydropower potential, as listed in the table below.

Table 6: Hydropower potential

Projects Capacity

Total projects 58 1601 MW

Large projects 10 1094 MW

... of which operational by 2010 2 267 MW

Small and medium projects 48 507 MW

... of which appraised for preliminary design 12 245 MW

... or in study phase/investment preparation 17 136 MW

Source: Pham Ba Huyen (Dec 09)

The Government has listed 8 large-medium hydropower projects for the Vu Gia – Thu Bon River Basin in the Sixth National Power Development Plan (2006-2010). From 2003, Quang NamProvince began preparing a provincial hydropower plan as part of its power development plan. Theprovincial hydropower planning process took about 4 years, from 2003 to 2006, including a processof proposal making and revisions to add additional small and medium projects to the plan. Thisprocess of progressively adding projects to maximize the potential for hydropower development inthe basin is continuing even though the plan for 2006-2010 has been adopted. 16

Figure 10: Reservoirs and hydropower plants

Source: ADB (Dec 06) and Pham Ba Huyen (Dec 09)

16 MONRE (Jan 08)

Da Nang

Tam Ky

Hoi An

500 km0

Laos

Operational/under construction

Planned

Song Con 2

Song Bung 5A Vuong

Song Bung 2

SongBung 4

Dak Mi 4

Dak Mi 1

SongTranh 2



29

Table 7: Existing and planned hydropower schemes

Project Active storage Installed capacity Electricity production

Mm3 MW Gwh

Song Bung 2 74 100 379

Song Bung 4 322 156 624

Song Bung 5 2 60 269

Dak Mi 1 93 225 850

Dak Mi 4 upper 158 180 787

Song Con 2 60 200

A Vuong 267 210 808

SongTranh 2 521 135 513

Source: MONRE (Jan 08)

Note: Dak Mi 1 may be changed to a cascade of 3 projects

4.3 Industry, manufacturing, services

General

Today, these sectors represent 75% of the economy in the basin (with 25% contributed byagriculture) (2008). Their relative significance will continue to increase, and particularly so for theservice sector.

This will generate new demands of water, over and above the demands of today. The exactimplications are difficult to predict - a software firm requires much less water than a food-processingindustry to generate a similar revenue (or per employee) - but the value generated per m3 of water is normally much higher in industry, manufacturing and services than in traditional irrigatedagriculture.

Normally, industries respond more readily to water demand management than it is the case of households and for agriculture. This is because more options are available for adjustments.

Policy implications

The following policy implications are general, but some of them may be relevant in the Vu Gia-ThuBon Basin:

• Promotion of higher water efficiencies, not only within industries, but for all water users.

• Gentle, transparent and predictable demand management, initially targeting new industries(while including existing ones in the course of time). This can be done in different ways,ranging from awareness campaigns, green certificates for good practices, raw water fees(including groundwater), sewage fees, and tradeable water rights.

4.4 Tourism and recreation

General

The Vu Gia-Thu Bon Basin has a rich potential for tourism, with assets such as mountains; scenicviews; wildlife; cultural attractions; and beaches.

In 1999, Hoi An was recognized as a UNSECO World Heritage Site, and so was My Son Sanctuary(45 km southwest of Hoi An). The Cham Islands with their coral reefs (off Hoi An) are classified byUNESCO as a World Biosphere Reserve. The Annamites mountain range (that includes theheadwaters of Vu Gia-Thu Bon) is one of WWF’s 200 global ecoregions.

Furthermore, the basin is well connected by road and railway. Da Nang has an international airport(with a capacity of 6 million passengers per year) and its deep-sea port is the 3rd largest in the

country.



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Table 8: Tourist arrivals and revenue (USD)

Province 2001 2002 2003 2004 2005

Quang Nam 543,479 659,578 826,000 1,024,412 1,362,126

Da Nang 423,290 557,410 517,530 649,110 758,870

Total revenue (USD) 543,479 659,578 826,000 1,024,412 1,362,126

Source: ICEM (Jan 08), data from Quang Nam and Da Nang statistical yearbooks

Tourism can be characterized by

• number of arrivals;

• average duration of stay; and

• average amount spent per visitor per day.

Visitors include both domestic visitors and tourists from abroad, including distant countries. Adistinction can be made between

• students and other young visitors with tight budgets. This kind of tourism may have modestbenefits in terms of revenue and livelihoods, but is important in a cultural perspective, bothnationally, Asiawide and globally;

• ecotourists, who are attracted by remote locations, often spending low amounts of money;

• mass tourism, with groups of people travelling on package tours. This kind of tourism hasparticular demands of infrastructure, facilities and services;

• high-end tourism, with large amounts spent per visitor per day; and

• cruise ship visitors (of which Da Nang receive many. They provide their own transport andaccommodation, and perhaps even meals. Revenues are mainly related to sightseeing andpowershopping.

Da Nang A master plan for culture, sports and tourism was approved by Da Nang People's Committee inSeptember 2010. 17 The plan expects that the culture, sports and tourism sector will increase itsrelative contribution to the economy from 7 percent today to 11 percent by 2020.

The target for 2020 is 8.1 million tourist arrivals, (including 1.4 million international arrivals), and arevenue of VND 14 trillion (some 700 million USD) generated by tourism. 18

Quang Nam Province

In 2010, the province was visited by 2.4 mill ion tourists, 4 percent more than the previous year. Half of these were domestic and half from abroad - mostly Europe, Japan, USA and Australia.

Currently, the Provincial Department of Culture, Sport, and Tourism is promoting the area to the

Southeast Asian tourism market.19

4.5 Forestry and mining

General

Management of forestry and mining involves balancing direct and indirect cost and benefits, as wellas immediate and long-term benefits.

17

Decision No 7099/QĐ

-UBND on 17 September 201018 Source: Website of Department of Culture, Sports and Tourism of Da Nang City, www.cst.danang.gov.vn19 Source: Communist Party of Vietnam Online Newspaper 23 Dec 2010



32

lowlands (<300 m) where only 19% of the land area remains forested, compared to 61-83% of landfor forest formations between 300 and 1,500 m, and 92% of land >1,500 m.

The quality of both production and protection forests has deteriorated in the course of time. Datafrom Quang Nam Forestry Department (2005) indicate that out of the remaining natural forest,

• 10% is classified as primary forest (rich in timber species) (mostly within special use forestareas); while

• 35% is classified as medium forest (mostly protection and production forests); and

• 55% is classified as poor, regenerating and bamboo forests (mostly protection andproduction forests).

Forests have major indirect values, including their ability to reduce the sediment yield and herebyprevent siltation in rivers and streams, not to speak of the many new and planned reservoirs:

• 3% of the forest is classified as of high importance for protection of headwater areas;

• 60% is classified as medium importance; and

• 37% is classified as of low importance

Mining

When well managed, mining can remain an important sector in the long term, generating revenueand providing livelihoods. 21

Today, the sector is characterized (or influenced) by

• rapid economic development;

• limited resources and management capacity of concerned authorities;

• use of inefficient mining and extraction techniques;

• limited enforcement of environmental performance standards;

• illegal activities which are most damaging to the environment; and

• erosion caused by land clearance from mining, extraction of ores and construction materials.

There are some180 deposits and ore occurrences in the Vu Gia-Thu Bon River Basin divided into 5groups: Energy, metal, non-metal, construction materials and mineral water. (1.2 million litres of mineral water produced in 2003).

In upland areas, mining is the main industry with gold extraction and processing, and rock and clayexploitation. In the central parts, extraction of rock, gravel, sand and clay along the rivers is themain industrial activity. In coastal areas, mining activities take place along rivers and beaches.

The Industrial Development Plan lists 68 mines in Quang Nam Province - 26 with permits for industrial scale operations and 38 for small scale mining. Since then, in 2006, another 13 permitshave been issued. Half of the operating mines are exploiting rock for construction. Others exploit

feldspar, clay for bricks and tiles, gold, coal, white sand, mineral water, and kaolin (potting clay).They employ more than 2,000 workers.

Clay extraction is characterized as 'excessive' while sand, gravel and rock extraction are moderate.

Illegal mining has been widespread in the recent past but is now declining.

MONRE has issued only two permits for gold mining in 25 years, in Bong Mieu and Phuoc Son.Bong Mieu began operating in 2006. It is the first modern gold processing plant built in Viet Namsince World War II. The Bong Mieu field is the country’s largest gold mining area, located in TamLanh Commune, Phu Ninh District.

21 This section and the remaining sections in this chapter are extracted from ICEM (Jan 08)



33

Table 10: Mines in Quang Nam Province (2005)

Mineral Industrial scale Small scale Total

Construction rocks 13 10 23

Feldspar 2 3 5

Clays for tiles and bricks 3 4 7

White sand 2 0 2

Coal 1 3 4

Imenit 0 2 2

Gold 2 6 8

Kaolin 1

Mineral water 3

Sand and gravel 2

Total 23 28 57

The national policy of the mining sector is set out in the Mining Law 1996 (revised in 2005). At theprovince level, the Master Plan of Socio-Economic Development to 2015 of Quang Nam Provinceidentifies the mining industry as one of three main industries to be promoted in the planning period.

The Revised Master Plan on Industrial Development - Small and Handicraft Industrial Developmentin Quang Nam until 2015 (2005) deals with mining and quarrying. It stipulates that the miningindustry must develop in a sustainable and planned manner to provide raw materials to other industries, employment opportunities, and to protect the environment.

All policies relating to mineral exploitation and environmental safeguards rest with the PPC. TheDepartment of Industry cooperates with DONRE to prepare plans on mineral exploration,exploitation and processing. DONRE carries out geological surveys and issue mineral exploitationpermits. DONRE coordinates and cooperates with People’s Committees at all levels. DONRE also

coordinates and cooperates with other departments, such as Department of Labour and SocialWelfare for safety in mining activities; DARD on matters related to forests; Department of Construction regarding construction materials; and Provincial Police regarding the use of explosivesin mining activities and public order.

Impacts of mining

DONRE has identified the following impacts of mining:• Chemical and sediment pollution of water resources (with mercury and cyanide as the

greatest concern);• changes to river morphology (affecting aquatic fauna availability, changing the flow

regimes and adding to the flood risk);• increased resource use, including fishing, hunting and collection of forest products;

• deposition of tailings and effluents in the rivers;• threats from improperly constructed tailings dams;• river sedimentation and damage in alluvial areas;• conflict between mining migrants and local inhabitants; and• erosion caused by land clearance, extraction of ore and alteration of river flow leading

to loss of agricultural land and sections of paths and roads.

Key mining issues and management concerns

Key issues relating to mining include

1 illegal gold mining;

2 water pollution from mines, and habitat destruction; and3 exhaustion of mineral resources for construction (such as clays and sand)



34

Illegal gold mining

Some years ago, a 'gold rush' occurred in Quang Nam Province, with rumours of high profits andon a background of lack of livelihoods.

Illegal gold mining attracted immigration from other provinces, and uncontrolled and unsustainable

use of natural resources in the upland areas of the basin. The use of mercury and cyanidecontaminated local waterways and fish.

Illegal mines operated throughout the province, but concentrated in mountainous areas such asBac Tra My, Nam Tra My, Phuoc Son, Thang Binh, Dong Giang, Tay Giang, and Nam Giang. Inupland areas, the (estimated) gold production reached 81kg/year and in the midlands 35 kg/year.

Most local people do not benefit from the illegal activities, which can cause insecurity anduncertainty.

Water pollution and habitat loss

Mining involves clearing of forests, surface water pollution, river bank landslides, encroachment onagriculture lands, sedimentation and habitat loss. Sediments from erosion caused by deforestation

and land clearance, and the mining operation itself, is inhibiting the aquatic fauna, reducing fishpopulations and forcing fish migration to less disturbed areas. Wastewater from sand and titanextraction sites along sea shores also pollutes beaches and sea water with suspected impacts oncoral reefs and fish stocks. Rainwater drainage from rock and clay mines are also causingproblems.

Wastewater from gold mining sites is a special concern. Pollutants include mercury, cyanide andCOD. Since 2003, DONRE has found that the mercury concentration has increased and exceededthe allowed threshold. While mercury and cyanide are associated with gold extraction, high CODconcentrations indicate an increasing load of wastewater caused by an increased number of peopleliving in the area, including miners. (Since 2004, the COD concentrations has been twice theallowed limit at some locations).

Sand extraction and processing (6 units) and titan mining activities (14 units) along the coast

release mercury into the sea.

Illegal exploitation occurs in many places such as of feldspar in Dai Loc district, of sand and gravelfrom the Thu Bon in riverbed in Dien Ban, Duy Xuyen and Dai Loc, Que Son, and Tien Phuocdistricts.

Quang Nam Province tries to stop illegal extraction of sand and gravel in streams and rivers and toimprove the management of these forms of mining. Enforcement has proved difficult, however.Limited capacity, unclear responsibilities for inspection, low investments and lack of environmentalawareness by miners, all contribute to the pollution of surface waters and groundwater. Theenvironmental performance of recently permitted mining is significantly better than in older ventures.

The use of water in the mining industry is expected to increase in line with the increasing extraction,

especially of rock, gravel and sand.

Exhaustion of minerals for construction

Quang Nam Province is suffering from declining outputs and exhaustion of some key mineralresources serving construction industries, such as clay, sand and gravel. This causes an increasingpressure along the rivers in the upland and midland parts, as mining expands to new locations. Thetrend is reversible if intensities and volumes are reduced and stricter controls are enforced.

Clay minerals for making bricks and tiles along the rivers in the upland and midland areas will bedepleted within 20 years due to the rapid expansion of the construction sector (including thecomprehensive hydropower development). In consequence, there are restrictions on mining of sandfor construction in Quang Nam, while Da Nang has prohibited exports of sand.



35

5 Environmental management

This chapter provides summaries of some of the current environmental management aspects.Details are provided in appendices.

5.1 Overview

Some environmental management challenges are listed in the table below.

Table 11: Overview of the environmental management agenda

Issue MU CP CZ DNC

Soil cover in reservoir catchments v

Temporary impacts during initial filling of reservoirs v v

Impacts of mining v v v

Biodiversity v v v

Forest cover, forest quality v v vRiver morphology v v v

River connectivity v v

Aquatic habitats v v

Agricultural runoff (pesticides) :

Water quantity and quality v v v

Waste and wastewater treatment and disposal v v v

Saline intrusion; brackish and freshwater regimes v v

Aquatic habitats, including mangroves v v

Bathing water quality (bacteria, floating waste) v v

MU: The mountainous uplands

CP: The central parts

CZ: The coastal zone

DNC: Da Nang City

Note: Issues are listed as examples in random order

5.2 Surface water quality and aquatic habitats

Surface waters

A suitable surface water quality, reflecting national standards, is important for public health as wellas the environment, and is therefore a major management target.

Supportive measures span across disciplines and sectors:

• Sewage collection and treatment, including pre-treatment at the source for hazardouseffluents and major releases of ordinary pollutants;

• orderly operation and maintenance of septic tanks;

• promotion of good practices (for households as well as industries) for water utilization,sewage generation and solid waste generation. (This may involve awareness-building,pilot and demonstration activities, and green certification of industries);

• promotion of good practices for use of fertilizers and pesticides, maximizing the intendedbenefits and minimizing the unintended side effects;

• good practices and adequate capacity for sludge disposal from septic tanks and sewage

treatment;



36

• good practices and adequate capacity for solid waste collection, processing and disposal,possibly including waste separation and recycling, and with due attention to hazardouswaste;

• continued monitoring of discharges and receiving water bodies;

•enforcement

of regulation; and

• continued knowledge-building (including thematic studies and scientific research) insupport of good and timely decisions.

Septic tanks

Septic tanks were never intended for densely populated urban areas. As it is, however, theyare now found everywhere.They have several merits, including versatility, financing, and returns on investment - in alocal as well as a basin-level perspective:• They are simple and robust and require little maintenance and no electricity;• they can reduce the contents of suspended solids, organic matter, nutrients and

bacteria in the raw wastewater. The effluent can decompose further quite readily when

exposed to oxygen or to soil bacteria; and• they can serve as a first step towards more comprehensive, centralized sewagetreatment, and can continue with reducing the pollution load by pre-treatment also after a sewer network has been established.

Septic tanks must be designed with an appropriate capacity. Sediments and sludge must beremoved at certain intervals and must be processed and deposited in an orderly way. Thiscan be done as a public service or by a concessioned private operator, with costs covered bythe users, a bit like solid waste collection and disposal. Cross-subsidies can be considered infavour of low-income households.

Source: Thi Thanh Van Ngo (Aug 10)

Aquatic habitats

The rich aquatic habitats in the basin include natural lakes, reservoirs, river branches and flowchannels, deep pools, wetlands, active flood plains, and mangroves. They have a high (and steadilyincreasing) economic, social and environmental value.

They are under pressure from changed land use, infrastructural development (transport corridors,flood protection and drainage), mine tailings, over-exploitation, disposal of wastewater and solidwaste, and other pollution, including agricultural runoff.

Preservation and enhancement of their value can be supported by land use planning andregulation; and protection against pollution and over-exploitation.

Reservoirs

Reservoirs (existing and planned) are aquatic habitats in their own right. Although artificial, they candevelop particular ecosystems, partly determined by their regular water level variations and theintermittent inundations of their banks. They can support fisheries, as well as recreation, in supportof local livelihoods.

They require appropriate management of water quality and ecosystems.

The mangroves

Mangroves are a traditional and characteristic feature of a healthy Vu Gia-Thu Bon Basin.

Mangrove vegetation serves a variety of purposes, such as environmental quality and biodiversity(including amphibians and birds); breeding grounds for fish (including edible and/or commercialspecies); supply of materials for traditional house-building; protection against coastal and riverbankerosion; and (although to a minor extent) protection against typhoons.



37

The remaining mangroves are under pressure from changed land use, including housing,aquaculture and (to some extent) salt ponds. The pressure is enhanced by the high value of landnear the coast and near the rivers.

They can be protected by supportive land use planning, including plans for rehabilitation wherepractical.

5.3 River network and connectivity

Part of the basin consists of alluvial flood plains, which have been morphologically active since theland was first formed by the river sediments and littoral processes along the coast. The planform of the river network has changed continuously, due to natural erosion and deposition.

Today, however, with the intensified land use, comprehensive (and expensive) physicalinfrastructure, and increased urbanization, the rivers are expected to remain in the place wherethey are. Morphological changes can

• damage structures along the river banks;

• affect the basic water availability for public water supplies (for example for the city of Da

Nang), as well as irrigation; and• increase the flood risk.

Also, aquatic habitats, ecosystems and the over-all environmental quality can be affected. This isparticularly the case when changes, natural or man-made, are made of the connectivity betweenriver branches and flow channels.

Human interventions in the river network comprise

• intersections for storage and diversions (dams, weirs and barrages);

• dredging and reclamation (for various purposes) that change the flow resistance);

• bridges (if the peak flow capacity is inadequate) (causing leeside erosion);

• sand extraction;

• deposition of mine tailings;

• excessive sediment releases due to changed land use (including deforestation) inheadwater areas;

• retention of sediments in reservoirs (causing downstream erosion);

• flood protection embankments; and

• salinity control facilities at the river mouths.

The impacts of such interventions are related by complex cause-effect relationships. From case tocase, they can amplify or reduce each other. Improved knowledge about this, and about the relatedmanagement options, will facilitate control of undesired natural morphological developments as wellas negative side effects of otherwise desirable human interventions

Morphological monitoring and pro-active morphological management can support a desired state of the river network and prevent or reduce negative impacts.

Possibly, in the course of time, a basinwide morphological management plan can be prepared,reflecting development concerns and priorities.

5.4 The forests

Whole section extracted from WWF (Nov 05)

Forest programmes

Forest programme components include migration restrictions, forest plantations, promotion of agro-

forestry, and forest rehabilitation. There is a consensus at the province level that the long-termlivelihood of the mountain communities should be based on forest plantations and forest services,given the relative abundance of forestry land.



38

In the midlands, there is substantial land suitable for tree plantations. Currently afforestation isbeing carried out under a programme called 661 aimed at reducing pressure on the forest byestablishing sustainable forestry-based livelihoods. Forestry land (with or without forest) is allocatedand contracted to households or institutions for plantations or forest protection. Compensation for afforestation is a small cash payment plus shared benefits of the wood and NTFPs, which is notenough to support a forestry-based household.

In the mountainous areas another government programme (supported by the MOSAIC project 22)aims to allocate all natural forest land outside of Special-Use Forest to communities. This will grantcommunity rights to forest lands, which should improve their ability to make use of NTFPs and tocontrol illegal logging, poaching and extraction, and therefore empower communities to pursuesustainable harvest of natural resources. This empowerment should alter the current situationwhere their natural capital is exploited by 'outsiders'. This province-level programme will beimplemented throughout the six mountainous districts.

The Song Thanh Nature Reserve

Special-Use forests include the Song Thanh NatureReserve, established in 2000. Biodiversity levels are highfor both flora and fauna species. In the Song ThanhNature Reserve, 1,129 species of flora have beenidentified, including 56 that are endemic to Viet Nam, 6that are included in the 2000 IUCN Red List and 47 in the2003 Viet Nam Red Data book. Of the region’s faunaspecies, 25 are listed in the IUCN Red List. Largemammals recorded in the Reserve include tigers, thegray-shanked douc, the redshanked douc, and therecently discovered Annamite and large-antlered muntac.Other large mammal species found in the provinceinclude the Asian elephant and the saola.

The six mountainous districts are identified as part of WWF’s priority landscape for the

Central Annamites and are included in the Central Truong Son Biodiversity ConservationInitiative of the Government of Viet Nam.

Policy implications

The following observations are made:

• Heavy investment in agriculture as the primary livelihood in the mountainous region is likelyto be very expensive for its rate of return in terms of poverty alleviation. Difficultenvironmental conditions - steep slopes, shortage of arable land, large irrigationrequirements, soil erosion - make agriculture unprofitable. Likewise, the socioeconomicconditions which characterize vulnerable peoples – limited economic resources, lowadaptability – keep the returns to investment in new agricultural techniques low.

• Current agricultural policies emphasize productivity, with little regard to quality or environmental sustainability. Implementation of this model of agricultural development islikely to have high future costs. It will deplete the very resources – soil, forests, and water –on which agriculture depends, and which provide other critical services for the poor population.

• The mountainous region has a very valuable resource in its forests, which protectbiodiversity, watersheds and soil in the region, as well as providing resources to theprovince and communities alike (timber and NTFP). Making this sector work for the poor islikely to be the most successful route to poverty alleviation in the region.

To date, forestry policy and programmes have not developed a strategic vision for poverty

reduction that makes sustainable use of these resources. To be successful, forestry policy

22 MOSAIC: Management of Strategic Areas for Integrated Conservation (WWF)



39

must allow the poor to benefit from activities that maximize the benefits of the ecosystemservices that the forest can provide. A new, well targeted, provincial programme seeks toaddresses the issues of land and resource allocation to communities, which is a step in theright direction.

In addition, appropriate extension services and management and investment tools areneeded by the poor to improve their forest-based livelihoods while ensuring sustainability.

• Several issues/problems require further monitoring and research. One is the need todevelop better indicators of poverty and vulnerability that reflect not only income levels butother contributing factors, and to measure poverty and vulnerability at a local level. Another is to improve the availability and accuracy of environmental data, for example on water quality, logging, poaching, and other issues.

• There is little capacity at the provincial or district level for environmental management.Careful consideration needs to be given to strengthening local capacity and ensuring thatthe various levels of government work together to promote sound environmentalmanagement that addresses forest degradation, soil erosion, and water pollution.

6 Bottom line

General

The basin has a rich potential for continued development, with its abundant natural resources:Land, water, forests and hydropower.

The outlook is bright for a prosperous future, with sustainable livelihoods and a healthy river basin

as common denominators.

Ongoing structural change

For quite some time, the economy has been in a state of evolvement, with the relative significanceshifting from agriculture to industry and manufacturing and further on to the service sector, includingtourism.

This change is highly relevant to the management of water resources, which must support the newopportunities while, at the same time, avoid undesired side effects (such as losses of traditionallivelihoods in agriculture, or environmental degradation).

The required adaptation can be smoothened by continuous improvement of water efficiencies for allwater users, and of production efficiencies in agriculture and processing industries. The aim in thisconnection is higher outputs per m3 of water in the short term, and higher value generated per m3

in the longer term. The development can be facilitated by

• improved storage capacity (small-scale and large-scale);

• joint management of groundwater and surface water; and

• promotion of contemporary technology, supported by research and gentle regulation.

Institutional aspects

A new river basin committee, to be established under Decree 120/2008, will provide a platform for holistic, IWRM-based planning and water-related development in the entire basin.

In this basin, there are strong inter-dependencies between the various sectors: Agriculture,manufacturing and industry, hydropower, disaster preparedness, and the environment. An RBC canprovide a substantial added value to the sector-wise development planning, without affectingexisting (and functional ) allocations of authority and responsibilities.



40

Development needs and opportunities

Development opportunities include for example

(i) water security: Safe water and sanitation, water for cultivation and other production, andconsolidation of sustainable livelihoods;

(ii) preparedness and mitigation capacity related to disasters and climate change; and(ii) a healthy river basin: Wastewater and solid waste management, and improved water quality.

There is a need of institutional capacity-building for basin-level management, including modalitiesfor smooth dialogue within the basin and among sectors. The related knowledge base may beconsolidated in support of timely and appropriate decisions on water allocation and protection of theaquatic environment.

References

(Most references are available from the Internet)

ADB (Nov 09): Water - vital for Viet Nam's future. Synthesis report of ADB's Water Sector Review Project (TA4903-VIE)

ADB (Dec 06): Song Bung 4 Hydropower Project Phase II (TA 4625-VIE). Final Report of TA Advisor.

ADB (Dec 06): Water for the poor - partnerships for action - Viet Nam. Final report, RETA 6123: Promotingeffective water management policies and practices (Phase 3)

ADB (06): Country strategy and program, Viet Nam 2007-2010

ADB (Feb 06): Strategy and program assessment, Viet Nam: Poverty assessment

ADB (Nov 05): Strategy and program assessment, Viet Nam: Gender situation analysis

ADB (Nov 05): Strategy and program assessment, Viet Nam: Governance assessment with focus on PAR and

anti-corruptionADB (Nov 05): Strategy and program assessment, Viet Nam: Private sector assessment

ADB (05): Strategy and program assessment, Viet Nam: Environmental analysis

ADB and DONRE, Quang Nam Province (Mar 09): Vu Gia-Thu Bon Basin, Viet Nam - development needs andopportunities. Working paper 2, prepared under RETA6470: Managing water in Asia's river basins

Doan Thi Tuyet Nga (Feb 09): Danang City’s water demand. Presentation at the 5th NARBO IWRM Training,Hoi An, by Da Nang Water Resources and Flood Protection Branch, DARD, Da Nang City

DONRE and ADB (Aug 10): IWRM implementation in Viet Nam. Working paper 13, prepared by DONRE,Quang Nam Province, under RETA6470: Managing water in Asia's river basins

Dunn, Bruce (Jul 08): Lessons learned from the pilot Strategic Environmental Assessment of the Quang NamHydropower Development Plan in Vietnam. Working paper published by ICEM

Ha Tien Luy (Mar 08): Status and issues in hydropower development. Subsector report prepared under the

water sector review project (ADB TA 4903-VIE)Huynh Van Thang (Nov 09): Overview of the Vu Gia-Thu Bon River Basin. Presentation at the 6th NARBO

IWRM Training, Da Nang

ICEM (Jan 08): Strategic Environmental Assessment of the Quang Nam Province Hydropower Plan for the VuGia-Thu Bon River Basin, prepared for ADB (TA 4713), MoNRE, MoITT & EVN. (See also Dunn Jul08)

IWC (Feb 09, revised Nov 09): Situation analysis of the Vu Gia-Thu Bon River Basin, Central Viet Nam.Prepared by Kristal Burry, Peter Oliver and Phuong Lien Tran, International Water Centre, for the 5thand 6th NARBO Training in Hoi An

Le Duy Vong (Dec 09): Water supply status and orientations for Da Nang City. Presentation at the 6th NARBOIWRM Training, Da Nang, by DARD, Da Nang City

MONRE (Jan 08): SEA of the Quang Nam Province Hydropower Plan for the Vu Gia-Thu Bon River Basin.Final report, TA 4713-VIE: Capacity building in the strategic environmental assessment of thehydropower sector in Viet Nam. Prepared by Ministry of Environment and Natural Resources,Ministry of Industry, Electricity Viet Nam, and ADB



41

MRC-BDP (Mar 05): National IWRM frameworks: Cambodia, Lao PDR, Thailand and Viet Nam. Workingpaper prepared under the Basin Development Plan of Mekong River Commission

Huynh Van Thang (Nov 09): Overview of the Vu Gia-Thu Bon River Basin. Presentation at the 6th NARBOIWRM Training, Da Nang

Nghia, To Trung (05): Strategic plan for IWRM of the Vu Gia-Thu Bon Basin organization. Chapter in Ti Le-

Huu (ed) (05): Good practices on strategic planning and management of water resources in Asia andthe Pacific. ESCAP Water Resources Series No. 85

ONWRC (Jul 08): Water sector review project (TA4903-VIE). Draft final report prepared by Kellogg Brown &Root Pty Ltd for The Office of the National Water Resources Council on behalf of the Government of Viet Nam and a number of international development partners led by ADB

Pham Ba Huyen (Dec 09): Hydropower development potential in the Vu Gia-Thu Bon river system.Presentation at the 6th NARBO IWRM Training, Da Nang, by Quang Nam Industry and TradeDepartment

Pham Phuoc Toan (Dec 10): Vu Gia-Thu Bon investment roadmap - good practices in IWRM. Presentation atthe 2nd stakeholder workshop for the Bengawan Solo Basin, Gresik, Indonesia (ADB RETA 6470)

Thi Thanh Van Ngo (Aug 10): Out of sight, out of mind - the forgotten merits of septic tanks. CRBOM SmallPublications Series no. 26, Center for River Basin Organizations and Management, Solo, CentralJava

Thi Thanh Van Ngo (Apr 10): Paddy cultivation - 20 years from now. CRBOM Small Publications Series no.20, Center for River Basin Organizations and Management, Solo, Central Java

Tran Thi Phan (Feb 09): Overview on biodiversity and relevant interventions in Quang Nam. Presentation atthe 5th NARBO IWRM Training, Hoi An, by the WWF Greater Mekong Programme (GMP)

Trinh, Chu Manh (Sep 10): Vu Gia-Thu Bon River Basin system profile. Presentation at the 1st Stakeholder Workshop held under the project 'Managing Water in Asia's river basins (ADB RETA 6470)

Trinh Xuan Lai (Dec 07): Water supply and sanitation. Subsector report prepared under the water sector review project (ADB TA 4903-VIE)

WHO and UNICEF (Jul 08): Coverage estimates, improved drinking water, Viet Nam. Prepared under theJoint Monitoring Programme for Water Supply and Sanitation

WHO and UNICEF (Jul 08): Coverage estimates, improved sanitation, Viet Nam. Prepared under the JointMonitoring Programme for Water Supply and Sanitation

WWF (Nov 05): Agricultural development in Quang Nam Province, Vietnam: Assessing policy impacts.Briefing note by WWF Macroeconomics Program Office, based on a longer paper written by Le VanHung (formerly WWF Indochina) and Tu Van Khanh (FPD Quang Nam)

Yusuf, Arief Anshory and Herminia A Francisco (Jan 09): Climate change vulnerability mapping for SoutheastAsia. Economy and Environment Program for Southeast Asia (EEPSEA)



42

Appendix A: Legislation and policy

Entire appendix extracted from IWC (Feb 09)

Law on Water Resources This law stipulates exploitation, utilization and protection of water resources,and prevention and overcoming of water-caused consequence. It also stipulatesthat water allocation and planning must use a holistic approach and reflect thetrue potential of the resource. In this law, MARD is responsible for theimplementation of river basin management. However, with the issue of 120/2008/ND-CP, MoNRE will undertake this responsibility.

Decree on Implementationof the Law on Water Resources (179/1999/ND-CP)

This decree stipulates the implementation of the Law on Water Resources.

Ordinance on Exploitationand Protection of Hydraulic

Works (No2/2001/PLUBTVQH 10)

This ordinance replaces the Ordinance on Exploitation and Protection of Hydraulic Works in 1994 to suit with the Law on Water Resources and the

recent exploitation and protection of hydraulic works.

Decree on Implementationof the Ordinance onExploitation and Protectionof Hydraulic Works(143/2003/ND-CP)

This decree stipulates the implementation of the Ordinance on Exploitation andProtection of Hydraulic Works.

Ordinance on DykeManagement (No 20/2000/PL-UBTVQH10)

This ordinance defines the legal framework for the construction, protection andutilization of dykes for flood control, the rescue of dykes during flood and stormseason, and defines authority and power of different levels and agencies inmanagement of dykes.

Ordinance on Preventionand Control of Flood and

Storm

This ordinance defines procedures for the formulation of activities to prevent,control and mitigate effects of floods and storms; to reduce losses; provide flood

relief, revitalize economic activities after floods and storms; and minimizeadverse consequences on the environment.

Government Decree onRiver Basin Management(120/2008/ND-CP)

This decree outlines management of river basins; allocation of water resourcesand inter-basin transfer of water; international cooperation on river basins; river basin coordinating organization; and responsibilities for river basinmanagement. This decree has set a milestone for Viet Nam’s water resourcesmanagement, separating water resources management from water utilizationmanagement and stating MoNRE is responsible for river basin management.

Government Decree onManagement, ExploitationHydroelectric and IrrigationLakes (112/2008/ND-CP)

This decree stipulates principles of management, protection, exploitation anduse environmental resource of those lakes; set up of protective corridors;forbidden activities; control of the water level of lakes; responsibility of thegovernment, ministries, and provinces.

Government decree on

regulation on licensing of water resourcesexploitation, extraction andutilization and waste water discharge in water sources(149/2004/ND-CP)

This decree stipulates the issuance, extension, amendment, termination and

suspension of licences for water resources exploitation, extraction andutilization and waste water discharge to water sources.

Law on EnvironmentProtection

This law stipulates environment protection activities; policies, measures andhuman resources to protect environment; rights and obligations of organizations, households and individuals in environment protection.

Law on Minerals This law stipulates the management, protection and basic geological surveys of mineral resources and mineral activities including prospecting, exploring, miningand processing of minerals in solid and gaseous forms, mineral water andnatural thermal water, except oil and gas and other types of natural water whichshall be subject to separate legal regulations.



43

Law on Land This law stipulates the authority and responsibility of the State in terms of ownership of land by the entire people for uniform administration of land; theregime for administration and use of land; and the rights and obligations of landusers.

Forest Protection and

Development Law 2004

The role of protected areas and special use forests to ensure the conservation

of biodiversity and forest landscape is defined under this law.National Water ResourcesStrategy towards 2020

The National Water Resources Strategy, Towards the Year 2020, is the firstnational document to set out comprehensively an overview, guiding principles,objectives, mission and implementation measures regarding the protection,exploitation, use and development of water resources, as well as theprevention, and mitigation of adverse impacts caused by water, together with 18high priority projects for implementation of the National Water ResourcesStrategy for the period 2006-2010.

Socio-EconomicDevelopment Planning(SEDP)

This program aims to provide pro-poor policies and initiatives that encouragesustainable economic growth and ensure social development and equity.

Decentralization The Government of Viet Nam has begun a process of transferring power onsome matters to the commune (local) level. This is done through a tendering

process. This process raises a number of issues (including a reluctance totransfer power, communes often requiring capacity building to increaseconfidence to handle the increased power and a general concern from higher levels over accountability once responsibilities have been delegated to thecommune) that will need to be addressed.

Supervision of GovernmentPlanning andImplementation

The People’s Councils are responsible for appraising and approving provincialand local SEDP and budgets. They are also responsible for the implementationof local SEDP and other development activities.

Affected Peoples Decree No 197/2004/ND-CP is the framework established to assist affectedpeople with compensation and resettlement as a result of the State acquisitionof land.

Master Plan IV This is the latest plan outlining development in the electricity sector to satisfydemand up until 2015.

Quang Nam ProvincialHydropower DevelopmentPlan

This plan outlines the proposed hydropower schemes within the province andwas approved in 2006. The plan has been updated with a number of new,small-to-medium schemes added to the 8 large and 36 small-to-mediumschemes already approved.

Biodiversity Action Plan2006-2015

This Plan is in its second incarnation (2006 -2015) with a focus on protectedareas as a means to protecting biodiversity.



44

Appendix B: Basin-level management issues


A consultative workshop was held in Tam Ky in November 06 with participation by provincial and district authorities from Quang Nam and Da Nang. During the workshop, 80 issues of relevance to overall socio- economic development of the Vu Gia -Thu Bon River Basin were identified and ranked by the participants.

Theme Issue Ranking

Environment

1 Hydrology Water shortage in dry season, low water levels 11

Big floods causing charges in water flow patters 3

Pollution of surface and underground water 6

Water sources downstream of Thu Bon river decreasing 7

2 Water quality Industrial wastes - heavy metal and chemical pollution increasing 8

High sedimentation loads due to deforestation 7Salt intrusion in dry season - increasing 6

Toxic chemicals from the American War remaining 1

3 Aquaticbiodiversity

Increasing demand in use and export of natural products 2

Polluted environment affecting fish and plant species 2

Use of destructive fishing equipment 4

Traditional practices and sustainable use braking down 6

4 Terrestrialbiodiversity

Abundant and diversified fauna and flora deteriorating 10

Biodiversity values mainly remaining in upstream areas 1

Strengthened high role of regional biodiversity conservation 1

5 Land/soil High level and increasing risk of erosion 9

Economics

6 Aquaculture andfisheries

Intensive fishing leading to reduced catch per unit effort 8

Reduction of feed sources for aquaculture – increasing costs -

Main economic species in rivers reduced/eliminated by reservoirs/dams 2

Pollution effecting aquatic habitats 8

7 Agriculture Soil erosion in upland agricultural areas, agricultural land degradation indownstream areas, acidic soils

11

Rice monoculture 1Use of fertilizers and pesticides causing pollution of soil and water 9

Reducing area of brackish aquaculture and increasing area of freshwater aquaculture, high environmental impact

-

8 Irrigation Only 55% of irrigation demand met 6

Competition of water use/demand between irrigation and hydropower –multi-use management required

2

9 Water supply Lack of water supply for residential areas 6

Water demand for industry and domestic use rapidly increasing -

Increasing ecological water demand: pushing back salt intrusion,combating pollution (by flushing); mitigating soil erosion along banks

(waterways) by reducing extreme flooding

-



45

Theme Issue Ranking

Lack of attention to systematic basin wide management and utilization of hydropower projects, lack of coordination among sectors

6

Lack of regular announcements on water quality and supply 1

Industrial park development, increase of water demand causingimbalance of ecology and population concentrations 4

10 Forestry Large natural forest area, high forest coverage in upland watersheds -high priority for conservation

5

Livelihood of many households depending on forest resource and forestproduction

8

11 Urbandevelopment

Building projects in low lying areas frequently flooded 2

Housing space fragmented, ribbon development, lack of associatedinfrastructure

7

Lack of safe water for residential areas 1

12 Transport Poor quality of local roads, many roads blocked, lack of roads to

commune centres

10

Limited use of inland waterways for transport 2

Poor inland waterway infrastructure 1

13 Mining Causing pollution of surface and ground water 4

Excessive exploitation of clay minerals; uncontrolled and poorlymanaged mining

7

Illegal exploitation of gold along rivers and in special use forests 6

Mining permitted in rivers where reservoirs are planned -

14 Industry Concentration of development within the basin - remote regions for rawmaterial extraction and processing plants

10

Conflict between primary industrial development (extractive including

hydro) and development of other sectors – in use of land and resources

3

Causing pollution of surface and ground water 2

15 Hydropower Management of water discharge -

Shortage of water in dry season when energy requirements draw downon reservoirs

4

Sedimentation in rivers and reservoirs – life span of reservoirs 2

Competition of water use/demand among sectors -

16 Tourism Rapid increase of tourists 3

Rapid growth of restaurants and hotels 1

Increase of waste loads 9

Restoration and development of trade villages 1Social

16 Demography Increasing immigration to urban areas from rural areas 1

Increase of resettlements 4

Poor labour force quality/training 6

Slow labour structural change/High percentage of workers in stateenterprises

1

17 Health Increase in life expectancy -

High rate of child malnutrition 4

Waterborne diseases increasing in flood season 3

Malaria still exists 2

Better access to health services 3



46

Theme Issue Ranking

HIV – small but potentially growing problem -

18 Ethnicminorities

Dependence on swidden agriculture, forest products and fishing in rivers 6

High poverty rate 6Low education 5

Conservation of distinctive cultural characteristics 2

Specific and diverse religions -

Need to develop education and health services -



47

Appendix C: Environmental baseline summaries

C.1 Air quality

Levels of NO2, SO2, CO and Pb remain well below what is acceptable according to national standard. 23

The concentration of particles, however, persistently exceeds the acceptable level over large areas in the dryseason, and occasionally in the wet season as well. It is believed that (apart from weather conditions) threefactors may play a role:

1 Traffic, releasing smoke and dirt from roads;

2 emissions from industrial zones; and

3 releases from construction activities.

C.2 Water quality

Surface waters (rivers, lakes, channels) Surface water quality is monitored at 11 stations in Quang Nam Province.

In some areas, surface waters are polluted by organic substances, rendering a dirty and unpleasant source of water with a bad smell and black colour. On the other hand, however, other pollution criteria (in terms of chemistry, physics, microorganisms and heavy metals) still largely remain at acceptable levels.

The quality is better in the wet season than during low flows in the dry season.

There is a clear difference between upstream and downstream parts:

• In the upstream and middle parts of the river system, the water quality is generally quite good atpresent, although with some impacts from mining and sand extraction;

• downstream, the quality is generally poor, and particularly so around the cities and some industrialzones, due to releases of untreated sewage. In the dry season, COD levels are well above thestandard, and DO levels well below.24 Furthermore, the lowermost reaches can be affected by salineintrusion from the sea.

Concentrations of pesticides and other toxic compounds are low, but with an increasing trend since 2003,possibly due to gold mining activities. Heavy metals - lead (Pb), zinc (Zn) and mercury (Hg) - remain wellbelow acceptable limits.

The concentration of coliform bacteria largely at acceptable levels.

A particular challenge relates to shrimp farms (in the lowermost parts of the basin), which can adversely affecteach other's productivity by releases of contaminated effluents.

Groundwater

The groundwater quality in Quang Nam Province is monitored at 12 stations for temperature, pH, colour, totalsolids, hardness (carbonate, CaCO3), nitrate (NO3), sulphate ( SO4), iron, and microorganisms (coliformbacteria and E coli bacteria).

Generally, the chemical quality is acceptable. pH is below the national standard 25 at some locations.

Most samples are significantly polluted by microorganisms. This is expectedly partly due to pollution and partlydue to poor protection of the wells where the samples are taken.

23 No. 5937:2005

24 COD: Chemical oxygen demand (mg oxygen per litre), a gross measure of degradable substances in the water;DO: Dissolved oxygen (mg oxygen per litre), an important characteristic for aquatic habitats

25 No. 5944:1995



48

Coastal waters

The quality of the coastal waters is monitored at 4 stations for temperature, dissolved oxygen (DO), BOD5, 26 heavy metals, oil and microorganisms (coliform bacteria).

The quality remains well within the national standard. 27

C.3 Solid waste

Waste generation by urban households

Quang Nam Province has 2 cities and 12 towns which share 17% of the population of the province. Hereby,Quang Nam is considered the province with the highest urban population. Hoi An and Tam Ky have thatlargest populations and are the main sources of solid waste from daily activities.

According to statistics from Department of Environment and Urban Services of Quang Nam, the total volumeof waste collected in 2008 was 152,000 m3, that is equivalent to 416 m3/day (or 220 t/day) from Thang Bình,Nui Thanh, Que Son, Duy Xuyen, Dien Ban, Dai Loc, Tien Phuoc, Hiep Duc, and Tam Ky City. In Hoi An iswas 100 m3/day (or 45 t/day).

Waste generation by rural households

The estimated total volume of solid waste from the rural population (of about 1.2 million people) is about 671t/day, out of which 80% is organic substances. Solid waste from rural households is being collected, but withsome difficulties:

• Facilities are inadequate; and

• waste disposal is less than orderly; much waste is thrown away in the household gardens.

Solid waste from hospitals and clinics

Quang Nam Province has 25 hospitals, including 8 province scale, 15 town scale and 2 private ones. Eachward or commune has a medical center, totalling 270 medical centers. The number of beds is 3,771.

It is estimated that each bed generates 1.2 kg solid waste/day, so the total amount of solid waste from medicalcenters is 136 t/month. Of this, 102 t/month (or 75%) is waste from daily activities, while the rest (34 t/month or 25%) is dangerous waste. s (33.94 ton/month, 25%). These amounts do not cover the hundreds of doctor’soffices in the province.

Solid waste from industries

There are 5 industrial zones in Quang Nam Province, including Dien Nam Dien Ngoc Industrial Zone (DienBan), Dong Que Son Industrial Zone (Que Son), Thuan Yen Industrial Zone (Tam Ky), Tam Hiep IndustrialZone, and Bac Chu Lai Industrial Zone (Núi Thành). They accommodate 80 investment projects. Besides,there are 23 industrial groups in operation with 70 factories.

The volume of solid waste has not yet been investigated but it can be concluded that the amount is high andincludes toxic wastes. 28

Solid waste from agriculture

Solid waste from agriculture includes waste from shrimp farming, livestock breeding, slaughtering andagroprocessing. This kind of waste can contain large amounts of organic substances and nitrogen, as well asmicroorganisms, larvae and eggs of parasitic worms. The waste can affect soil, water and public health.

Waste from small-scale slaughtering is normally buried in the ground.

Waste from livestock is now being widely used as organic fertilizer; but this accounts for only 30-40% of thiskind of waste.

26 BOD5: Biological oxygen demand over 5 days (mg oxygen per l itre), a gross measure of the contents of

degradable organic substances27 No. 5943:199528 according to the Solid Waste Management Board



49

There is a scope for better practices.

Collection, treatment and disposal

Two companies undertake collection and disposal of solid waste in Quang Nam Province: Company of UrbanEnvironment of Quang Nam, and Company of Public Buildings of Hoi An

The Company of Urban Environment of Quang Nam collects waste in Tam Ky City and in such towns as NúiThành, Phú Ninh, Thang Bình, Hiep Duc, Que Son, Tien Phuoc, Duy Xuyên, Dien Ban, and Dai Loc. Thewastes are dumped in landsites such as Dai Hiep-Dai Loc, Hill 42-Thang Bình, Tam Dàn-Hòa Thuan-Tam Ky,Tam Nghia-Núi Thành and Tam Xuân-Núi Thành.

The Company of Public Buildings of Hoi An collects wastes in Hoi An and wastes are dumped at Cam Ha landsite.

Besides these two companies, garbage collection takes place by local initiative in some towns, such as TràMy, Nam Giang, Tây Giang, and Phuoc Son. The waste is dumped in temporary disposal sites in a somewhatunsustainable way.

Table 12: Companies involved in garbage collection and solid waste disposal

Name of company Employees Waste collected

t/day

Company of Urban Environment of Quang Nam 209 220

Company of Public Buildings of Hoi An 130 45

All the collected waste is processed and dumped; there is no recycling at present

Source: Reports from the two companies in 2007

Solid waste is mainly collected in urban and coastal areas, with rates of up to about 75%, mainly from marketsand households near major roads. Only small amounts are collected from industrial zones and hospitals.

The rate of waste collected in the highlands is small, except for towns, markets and small factories.

Medical waste from the lower parts of the basin (including Tam Ky) is collected by the two companies l istedabove and is taken to Quang Nam Hospitals for incineration. The incinerator capacity is 200kg/day. In thecentral and high parts of the basin, toxic wastes are only treated by temporarily burial. The collection,transportation and treatment of medical wastes are not strictly controlled.

There are 6 waste disposal sites, with 3 in operation and 2 under construction, while 1 has stopped operation.

The Company of Urban Environment of Quang Nam is managing 4 sites: Tam Nghia (Núi Thành), Tam Dàn(Tam Ky), Hill 42 (Thang Bình) and Dai Hiep (Dai Loc). The Tam Xuan land site is being established toreplace the Tam Dan one. The Company of Public Buildings of Hoi An is managing the Cam Ha site (Hoi An).

None of the waste disposal sites applies effective treatment. Waste is buried or (at Cam Ha) simply depositedon the ground.



50

Table 13: Waste disposal sites in Quang Nam Province

Name Year built Size Expected lifetime Capacity Status

ha t/day

Cam Hà 1992 0.9 Waste is piled 3.5 m

above ground level

45 In operation

Dai Hiep 2003 11,2 20 years 150 In operation

Doi 42 2008 5,9 25 years 90 Stopped

Tam Dan 1997 3,4 20 years 180 In operation

Tam Nghia 2004 5,7 20 years 120 Being built

Tam Xuân 2006 12 30 years 300 Being built

Source: Reports from Company of Urban Environment of Quang Nam and Company of Public Buildings of Hoi An, 2007

Waste separation and recycling

Waste separation and recycling at the source is being piloted under the project 'Improving the ability tomanage the environment in Hoi An Town'. 29 The pilot area is Cam Thanh, Hoi An City. The pilot activity hasparticipation by 8 hamlets. The project provided scientific information to local leaders about the 3R concept of reduce-reuse-recycle.

6 months into the project there are some satisfactory signals.

• Public awareness has been improved about the importance and the benefits of waste separation andrecycling

• Waste volumes have gone down, both for degradable and non-degradable waste

• Organic waste is now used for fertilizing compost

In a related development, people on Cham Island (off Hoi An) have agreed to reduce the use of disposablebut non-degradable nylon bags.

Experience from the pilot study can benefit the entire basin.

Table 14: Pilot implementation of waste separation and recycling at Cam Than

Hamlet Total waste Organic waste Recycled waste

kg/day kg/day percent of total kg/day percent of total

1 3,052 1,894 62 477 16

2 4,356 2,787 64 502 12

3 1,487 712 48 297 20

4 1,669 384 23 872 52

5 2,083 1,031 50 289 14

6 4,008 2,630 66 618 15

7 2,490 1,819 73 216 9

8 4,039 2,174 54 606 15

Average 2,898 1,679 57 485 17

Data: 35 daily surveys

29 Source: Department of Natural Resources and Environment of Hoi An City



51

C.4 Forests and biodiversity

Inland forests

The basin has a large forest cover, most of which is natural. Most natural forests are in the mountainoushighlands, and some are in the central parts.

The forest cover increased from 41% in 2001 to 44% in 2008, due to several programmes that protect existingforests (including drainage basins of reservoirs) and promote commercial afforestation. On the other hand,10,000 hectares of forest cover will be lost in the years to come due to inundation, clearing for road andtransmission corridors and construction of resettlement areas.

Table 15: Forest cover 1996-2006

Year Total

2000=100

1996 96

1998 108

2000 100

2002 102

2004 104

2006 106

Table 16: Classification of forests 1996-2006

Kind of forest 1998 2004 2006Percent of total

Protective forest (natural) 49 68 64

Protective forest (man-made) 2 4 6

Production forest (natural) 49 20 21

Production forest (man-made) 0 9 9

Total 100 100 100

The forest quality, however, is deteriorating. Statistics in 2005 from the branch of the Statistic Board in QuangNam show that only 10% is classified as primeval forest30, 35% is normal and the rest is poor forest,secondary forest 31 and bamboo forest.

Forests are damaged by forest fires, logging, mining, cultivation, and excessive extraction of forest products.Permanent losses are caused by reservoirs and changed land use (for cultivation, infrastructure and other purposes).

30 Primeval forest are unaffected by human activities31 Secondary forests are young and in a state of development or restoration in areas that have been affected by

forest fire, logging or shifting cultivation



53

along the river branches and canals. Some small nipa areas are seen in ponds around gardens, planted bythe people who live here, for collection of leaves and to feed some kinds of fish and shrimps. (Ironically, manysalt fields and shrimp ponds have not performed according to expectations. According to interviews, theowners face a lot of difficulties).

A survey has been conducted of the area of nipa forest along the lower section of Truong Giang River and AnHoa. At present, such forest mainly occurs in Con Si and along ponds in Tam Hai, Tam Giang, with a totalarea of about 20 ha only.

Figure 12: Area of nipa vegetation in Hoi An

Biodiversity

The basin has a rich biodiversity:

50 species of large mammals has been confirmed,

12 of which are globally classified as vulnerable 34; with an additional

11 species provisionally recorded through interviews, 2 of which are globally classified as vulnerable;

22 species of bat have been confirmed;

270 bird species have been confirmed, 2 of which are globally classified as vulnerable: The crested argus(Rheinardia ocellata) and the golden-winged laughingthrush (Garrulax ngoclinhensis);

48 kinds of reptiles of which

6 turtles are globally classified as vulnerable;

35 amphibians, of which

1 frog, the Annam flying frog (Rhacophorus annamensis) is globally classified as vulnerable;

194 species of butterfly have been confirmed;

1,129 plant species have been identified. Of these,

6 are classified as globally vulnerable, while

47 species are classified as vulnerable.

C.5 Public health

Contaminated water is a cause of many serious human diseases, and stagnant pools of water (whether cleanor contaminated) can support the spread of malaria.

Contaminants (micro-organisms, parasites, heavy metals) can occur naturally, and/or they can be related topollution from production processes and other human activities (insecticides, pesticides, organic pollutants,other chemicals, heavy metals, microorganisms), with some components being harmless in smallconcentrations (and occasionally even beneficial, as it is the case for iodine and fluoride), and harmful athigher levels, whether this is for natural reasons or due to human activity.

34 in the 2003 IUCN Red List of Threatened Species

100 ha

75 ha

50 ha

25 ha

0 ha

1996 2001 2006

Total

Protected



54

Contaminants can reach the human body directly with the water, or via edible plants and animals, where theymay accumulate (heavy metals in fish liver is an example). They can cause a broad range of acute andchronic maladies.

In Quang Nam Province, water-related diseases occur annually, with hundreds of cases. 10 cases of foodpoisoning were recorded from 2005 to 2007, with 447 people (unique visitors) being infected - mostlylabourers from 15 to 45 years.

Pollution caused by aquaculture also have negative consequences for human life, affecting the water quality inrivers, and hereby their yield of fish and crabs. The water can even be rendered unsuited for irrigation (not tospeak of aquaculture itself).

Groundwater pollution by pig farms is a threat to households, if wastes infiltrate the soil and reaches thegroundwater layers and the wells, rendering the water unsuited for households in the area. Surveys show that,for this reason, households around large pig farms have shifted to bottled drinking water, at a cost of around200-300,000 VND per month.

In other parts of Viet Nam, lack of iodine in drinking water is a serious threat to human health, mostly inremote (and poor) mountainous areas. It is not known whether this is an issue in the Vu Gia-Thu Bon Basin.



55

Appendix D: Environmental issues

D.1 Agriculture

A general trend is that the use of pesticides has decreased compared with 10 years ago, because the earlier number of applications has decreased from 5-6 to 2-3 sprays/crop.

The availability of safer plant protection chemicals has improved over time, and so have the related impactson the water quality of the rivers.

The estimated annual use in Quang Nam Province is about

375 tons of pesticides;80 tons of herbicides;30,000 tons of urea:25,000 tons of phosphate; and about15,000 tons of potassium.

The water quality can also be affected by occasional irregular disposal of dead animals.

Table 18: Impacts of agriculture

Activity Environmental impacts

Cultivation; use of fertilizer, water,pesticides and herbicides

Land and water polluted by fertilizers, pesticides andherbicidesProduction, animal wastePublic health damageBiodiversity influence

Livestock (animal waste) Land, water, air polluted by animal wastesWorker health damage

Biodiversity influenceCrop shifting Reduced use of irrigation water and agrochemicals

Scientific and technological innovation Effective use of fertilizers and plant protection chemicalsProtection of farmer healthEnvironmental and biodiversity improvements

D.2 Industry

The recent industrial development reflects the political priority to industrial development. The relativecontribution by industry in general to DGP has increased, while the relative contribution by the agro-forestrysector has decreased.

Industrial development attracts and creates more jobs, not only for urban areas, but also for rural youth. Itincreases the income for rural families, and changes the population structure of the province.

The demand for labor increases, but mostly for skilled labor, and local workers rarely meet this qualification.Vocational training is urgently needed in order to increase the quality of labor and to meet developmentrequirements.

However, the process of industrial development also showed some side effects, as follows:

• The area of agricultural land reclaimed in 2008 was almost 5,400 ha, accommodating 8 fairly largeindustrial areas and 43 industrial clusters. This affected the agricultural production and the life of people.

• The extended infrastructure and industrial zones will generate waste, affecting water, air, clean water supply and the demand for electricity.

• The concentration of workers generates more waste, and also causes more pressure on security andorder, and social evils (crime) in the local areas.



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Table 19: Environmental impacts of industrial development

Activity Impacts

Development of industrial zones and

clusters: 8 industrialzones within 4,225 ha;43/153 industrialclusters have beenestablished whichcreated 15,000 jobs

Industrial zones are concentrated mainly near the big cities, within a convenienttransportation, and located in the coastal plain and the Chu Lai Open Economic

Zone. The infrastructure construction of industrial parks impact air environmentdue to dust, impact on landscape and biodiversity from land leveling, cuttingtrees for expanding ground, as well as building factory. Development zones,industrial clusters lose productive land. Many households have relocated, whichaffect their lives. The production activities of the industry create more waste,waste water, dust, smoke emissions and solid wastes. If not well managed, itwill affect the environment and health of workers, as well as communitypopulation around

Processing industry Industrial food processing plants are concentrated in the industrial clusters inthe coastal plain, near the raw material zones. This also creates more wastewater, solid waste and odor polluting water, air.

Construction Building materials industry developed mainly in the mountainous and midlanddistricts, where are near the building material areas, except for the constructionglass industry located in the sand mines along the beach. Exploitation of sand

and gravel is scattered in the main river system of Vu Gia -Thu Bon. The non-planned exploitations of waterfronts cause erosion, and increase the turbidity of the river water, which in turn affects the aquatic habitats and biodiversity. (Theproduction of stone tiles and glass panels take place in the industrial parks).The impacts of the extraction has changed the landscape, creating dustaffecting the regional air quality. In the rainy season, rainwater carries dust thataffects surface waters and biodiversity in the lower Thu Bon basin

Mining The exploitation of minerals such as white sand and titanium takes place in thecoastal sandy area in Nui Thanh and Duy Xuyen. Other minerals includelimestone, feldspat and coal. The extraction causes loss of coastal protectionforests and depletion of groundwater (due to mineral water extraction). Theactivities generate dust and wastewater, affecting the quality of air, surfacewaters and groundwater. Gold mining contaminates water with suspendedsolids and toxic chemicals

Mechanic industrialdevelopment

This traditional cornerstone is now developing more slowly. Currently, it isconcentrated in the industrial areas and the Chu Lai Open Economic Zone. Itincludes a car assembly plant, mechanical pre-processing, and equipmentproduction. Shipbuilding and boat construction are scattered in the coastaldistricts, to serve the fisheries. Waste produced (such as plating wastewater) isdisposed without any treatment, affecting the aquatic environment

Hydropower development of 8 largeand medium factorieson the Vu Gia-Thu Bonriver basin, and 43small ones on their tributaries

These projects are concentrated in the upstream parts of the Basin. It isexpected that eight large-scale and medium plants will be completed by 2015.Creation of upstream reservoirs, especially cascade reservoirs, will change theflow regime of the rivers, affecting the downstream water regime, and the water supplies for households, and for irrigation and industrial parks. The reservoirs,when full, will divide the ecosystem in the upstream areas, because cascadelakes cut off the path of migrant animals. They can cause micro climate

changes, and may change the flora and fauna of the area. The inundationreduces the productive lands of the local communities and removes a number of resources (forests and mines). The biggest impact, however, is the changedhydrological regime and biological diversity in downstream areas

Traditional villagedevelopment: 61traditional villagesimproved, and 20others were recognized

These activities are associated with rural areas and are concentrated in thecentral plains. The waste generated (as solid waste and untreated wastewater)has impacted the environment, but to a limited extent only



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D.3 Tourism

Hoi An is located at the river mouth. Its surface waters are influenced by many activities, its urban areas are inturn affected by tides and salinity intrusion. In the dry season, sea water can enter up to the Cau Lau Bridgeand contaminate the piped water supplies, affecting the life and production activities of people.

Otherwise, the quality of the river water is generally fair, but with signs of a decline, for example where theHoai river branch passes urban centers and receives wastewater from Hoi An market, as well as other domestic wastewater, and sewage from hospitals, restaurants and hotels. The surface water quality in the cityis also affected by industrial waste and household garbage.

A serious concern is that the city of Hoi An has no facilities for treatment of wastewater and solid waste. Somefactories and production facilities apply on-site treatment but do not meet standard requirements.

In general, the surface waters are affected by waste and wastewater disposal from households, industries,services, tourism, and transport, with additional impacts from upstream mining operations and hydroelectricplants.

D.4 Hydropower

Impacts from hydropower development include waste generation during construction; changed flow andchanged flow resistance; groundwater depletion and pollution; and changes to aquatic habitats in downstreamareas.

Particular impacts can occur during filling of the reservoirs, such as water depletion in the dry season, andrelated saline intrusion. Solid wastes stored in the reservoirs can affect the water quality for many years.

There are visible benefits in terms of livelihoods: low-skilled workers in the provinces participate in theconstruction, and people get opportunities to work in the service sector.

The tables below summarize the specific and general socio-economic and environmental impacts of hydropower schemes.

Table 20: Specific impacts of hydropower schemes

Project Affectedpeople

Agriculturalland lost

In which, paddy(rice) lands

Relocatedpeople

River flowblocked

ha ha km

Sông Bung 2 4,700 0 0 10

Sông Bung 4 5,500 112 52 953 4

Sông Bung 5 3,700 0 195

Dak Mi 1 4,000 70 215 28

Dak Mi 4 7,300 0 126 27

Sông Giang 4,600 300 150 1647 0

Sông Con 2 3,100 60 74 6A Vuong 1500 9

Sông Thanh 2 9,500 566 ? 4050 0

Total 42,400 1,108 202 8,760 84



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Table 21: General impacts of hydropower schemes

Construction Activities Impacts

Preparation for construction lands,

supplementary works(roads, shelters, soil,rocks mining…), factoryconstruction, transfer station…

- Relocation of resident areas, gardens,trees, forests…

- Land leveling- Transportation of trees, soil, rock,

material for construction- Workers’ garbage and waste water

disposal

- Communities in the projectareas lose production land and

shelter Environmental pollution of air,soil, water by emissions fromconstruction and households

- Impacts on biodiversity- Occupational risks for workers

Operation Activities Impacts

Water storage andpowerplant operation

- Generation of electric power - Creation of reservoirs- Land loss because of reservoirs- Regional climate change- River flow change and reservoir water

quality change, with many streamsdried and changed flow

- Shifting of some terrestrial ecosystemsinto aquatic ecosystems

- Regional hydrology regime change,particularly in Da Nang and Hoi An

- Improved economicdevelopment and livelihoods inthe whole basin and beyond

- Improved economic situation for some local people (byemployment in tourism and

other services)- Impacts on biodiversity in and

around the reservoirs anddownstream

D.5 Forestry

Deforestation and shifting cultivation have caused soil erosion and land slides. Mining of gold and other minerals have generated erosion and siltation, especially in the upstream reaches of Bung River, Vang River and Tranh River.

Strengthened measures to protect the forests have increased the tree cover and protected the catchmentareas of the reservoirs. This is important because of the high rainfall in the mountainous areas (pf 2,500 -3,000 mm/year). A healthy forest cover will reduce the sediment yield, expanding the lifetime of the reservoir,and reduce the peak flow (and hereby the flood risk).

The illegal exploitation of forest products, including rare wood, and hunting of rare animals remain threats tothe habitats and biodiversity because of high profits.

Forest connectivity

The last decades have seen an increasing fragmentation of the forests, and hereby a loss of ecological connectivity, without links that would allow the dispersion of plant species or movement of animals.

Some of the gaps are very large, such as across cultivated river valleys or economic corridors;others are smaller, across simple cross border trade roads.

Whilst the theoretical distribution of many wildlife species may be quite large, fragmentation of suitable habitat areas is causing sub-populations within Quang Nam to become too small to beviable over the long term.

For example, the endemic Annamite muntjac (barking deer) has 1,450 km2 of remaining foresthabitat in Quang Nam, but only 14 areas of suitable habitat are larger than 10km2.

Source: ICEM (Jan 08) quoting Long (2005)

D.6 Urbanization

The main environmental impacts of urban development are summarized in the table below. The impacts aremainly related to loss of productive land (and livelihoods); increased generation of solid waste andwastewater; and increased traffic.



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Table 22: Socio-economic and environmental impacts of urbanization

Activity Impacts Solutions

Urban space expansion - Loss of land and livelihoods of local people- Increased garbage and

wastewater generation- Damage to biodiversity

- Resettlement, retraining, creatingnew jobs- Waste collection and treatment

Population growth, newresidential and serviceareas

- Increased domestic wastegeneration

- Complex security and socialimplications

- Increased demand of water supply and other services

- Waste collection and treatment- Strengthened urban management

(local government, police, massorganizations)

- Improvement and expansion of localmanagement

Expansion of technicalinfrastructure

(transportation, drainage)

- Improved quality of life- Loss of lands

- Dust, noise, traffic accidents

- Resettlement, retraining, creatingnew jobs

- Strengthened urban management

Increased economicactivities (production,services)

- New job opportunities- Increased waste volumes- Increased water supply

demands- Security and social (criminal)

implications

- Technical infrastructure and industrialcluster planning

- Waste collection and treatment- Strengthened urban management

D.7 Fisheries

Shrimp cultivation without planning can result in various negative impacts that affect the cultivation itself aswell as the surroundings: Spread of shrimp diseases, pollution of water for shrimp cultivation as well asgroundwater; depletion of water sources used for activities of local communities in the coastal areas; andgroundwater salinization. Special concerns relate to the areas along the Truong Giang River.

Table 23: Statistics of damage to aquaculture

2003 2004 2005 2006 2007 2008

Area of shrimp culture (ha) 2,326 2,328 2,500 2,337 2,561 1,998

Area affected by disease (ha) 1,500 150 70 120 15 170

Total yield (t/year) 1,700 3,011 3,250 3,405 3,742 8,500

Excessive exploitation of marine products and the use of destructive fishing gears (such as explosives, toxicchemicals, and small mesh dragged nets) are serious to exhaustion of resources, as well as loss of biodiversity in the coastal zone. The same is the case for waste discharges and oil pollution from boats.Examples of affected areas are Cham Island and the Thu Bon river mouth around Hoi An.

Mangrove deforestation due to reclamation for aquaculture ponds affects the biodiversity and enhances thecoastal erosion.

D.8 Mining

A distinction is made between industrial scale and small-scale mining. Small-scale mining is driven by povertyand unemployment. These operations lack financial resources to invest in equipment, including pollutioncontrol equipment.

The industrial development plan of Quang Nam Province includes 26 industrial scale and 38 small-scalemining activities. The 2005 Environmental Status Report of the province listed 47 enterprises operating 57mines. In 2006, the province issued 13 additional mining permits.



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Half of the mining operations produce stone for construction. Other mines extract minerals, clay for bricks andtiles, gold, coal, white sand, mineral water and kaolin (porcelain clay).

In 25 years, DONRE has issued only two licenses for gold mining: Bong Mieu and Phuoc Son. Bong Mieu islocated in Tam Lanh Commune, Phu Ninh district. It started operation in 2006 as the first modern goldprocessing plant in Viet Nam since World War II. Currently, it is the largest in the country.

The value of gold mining and coal mining has increased rapidly since 1997.

Table 24: Mining and extraction operations (2005)

Type of extraction Total Industrial scale Small-scale

Construction rock, stone 23 13 10

Mineral sediments 5 2 3

Clay 7 3 4

White rock 2 2 0

Coal 4 1 3

Inmenit 2 0 2Gold 8 2 6

Cao-lanh 1 ? ?

Mineral water 3 ? ?

Sand and gravel 2 ? ?

Total 57 23+ 28+

DONRE, Quang Nam, estimates that there are 2,337 workers legally working in the mining industry, with over 70% from non-state sector enterprises.

There are a number of environmental issues:

1 Mining illegally, especially gold mining

2. Water pollution

3. Over-exploitation of mineral resources for construction (clay and sand)

Illegal gold mining

Five years ago there was a 'gold rush' to the province. It attracted migrants from other provinces and ledto uncontrolled and unsustainable activities in the upstream parts of the basin.The use of mercury and cyanide polluted local waterways and destroying fish.The illegal mining activities were scattered, but mostly occurred in the northern mountains of Tra My,Nam Tra My, Phuoc Son, Thang Binh, Dong Giang, Tay Giang and Nam Giang. In the uplands, goldmining is estimated to produce typically anywhere around 80 kg/year and in the midlands anywherearound 35 kg/year.An estimated number of 2,000-7,500 people have been involved in mining activities, perhaps evenmore. The work takes place for only a few months each year.

The situation has improved in recent years, after issuing permits to financially and technologically capablecompanies; but water pollution still exists. Mining for gold and construction stone require major land clearancefor the mining area itself as well as auxiliary premises such as transport. So, in addition to reducing the forestcover, mining causes erosion, releasing sediments washed by rain to downstream areas, where they causesiltation and overflow.

Sand mining typically takes place on the dry river beds or near the rivers, where it will affect the flow andcause sedimentation, erosion along the shores, and loss of productive land. Activities also occur in other

areas, including areas that are important for biodiversity.



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DONRE has identified the following impacts:

• Chemical pollution and sludge releases (with mercury and cyanide as the most worrying);

• morphological changes affecting the aquatic fauna and changing the flood regime;

• excessive resource exploitation, including fishing, hunting and forest products;

• disposal of waste directly into the river;

• impacts of dams built without due consideration;

• sedimentation releases and damage in the delta;

• conflicts between migrants involved in mining and local residents; and

• soil erosion related to land clearance, mining ores and changed flow of the rivers, causing damage toagricultural land and roads.

Some local residents were able to create business services for the mining people, but most do not benefitfrom the mining activities. In general, the illegal mining causes insecurity and confusion

At present, mining has significant negative impacts to the water quality and the aquatic environment in the Vu

Gia-Thu Bon Basin. If well managed, however, mining is an important economic sector that can generaterevenue as well as livelihoods.

D.9 Transportation

The economic development in the basin is associated with a significant escalation of traffic. The related,visible socio-economic and environmental impacts can be prevented or reduced by measures as listed below.

Table 25: Impacts of traffic and related mitigation measures

Impact Affected by

L: LocationD: DesignC: Construction

methodology

Solutions Implementation andmanagement

Land preparation phase

Changed life conditionsand working environmentof local people withinand around the projectarea

L, D Policies for compensation,financial support, relocation, andtraining for reasonable livelihoods

- Compensation boardfor damage andrelocation

- Investors- Local government

Construction phase

Noise from equipment,machines, trucks, cars…

L, C - Protection walls around theconstruction areas (for safetyand noise reduction)

- Accept of temporary impactsduring construction phase

- Contractor - Investors- Local government

Vibrations L, C Good design and methodology,silent pressure pile driving

- Select construction areas far away from residential areas, if possible

- Contractor - Survey and design

agencies- Investors

Air pollution: Dust, rockand emissions fromconstruction equipment

L, C - Material carried by trucks mustbe covered according to therequirements

- Watering of roads to protectagainst dust

- Regular testing of constructionequipment

- Contractors- Investors

- Transportation policeand investigators



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Impact Affected by


methodology


Instability of naturalterrain, especially inmountainous regions,landslide during the rainyseason

L, D - Appropriate alignment;minimizing the depth andslopes of ditches andembankments

- Choose stable topographicaland geological conditions,stable enough for construction

- Apply solutions that aresecured against collapse

- Provide adequate drainage

- Survey and designagencies

- Investors

Pollution of land andwater due to oil and toxicleaks and spills

C - Strengthen managementduring construction

- Prepare measures for timely

response

- Contractors- Investors

Exploitation of soil, rocksand sand for construction

D - Optimize design to minimizethe use of materials, and tobalance excavation and landfillvolumes

- Conduct impact assessmentand provide solutions toproblems affecting theenvironment (like for industrialmining projects)


- Local government- Investors

Operation phase

Changes of the naturalflow of rivers and

streams, including floodflow capacity

L, D - Reasonably designed drainageworks in order not to affect

drainage and flooding,especially with alignmentsperpendicular to the flowdirection.

- Provision of reasonableupstream drainage to avoiderosion.


- Investors

Local flooding L, D - (as above) - Survey and designagencies

- Investors

Noise pollution causedby traffic

L, D - Design structures in a way thatreduces noise

- Testing and strict control of

vehicles- Separation of traffic corridorsand areas affected by noise(also for the sake of safety)


- Drivers

- Local people- Police, trafficinvestigators

- Localgovernments

Air pollution by dust andemissions of traffic

L, D - Testing and strict control of vehicles

- Promotion of environment-friendly means of transport,such as bicycles and vehiclesusing gas or electricity, andpublic rather than privatetransport

- Appropriate design reducingdust caused by vehicles

- Drivers- Investors- Police, traffic

investigators- Local governments



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Impact Affected by


methodology


Traffic accidents D - Better awareness of traffic lawsand rules

- Design in accordance withtraffic safety standards andregulations

- Testing of and strict control of vehicles

- Enforcement of traffic laws,with strict sanctions againstviolations

- Drivers- Survey and design

agencies- Police, traffic

investigators- Local governments

Indirect facilitation of illegal logging anddeforestation:

L - Strengthening themanagement and controlactivities of the ranger force

- Strengthening the awarenessof benefits of forest protection- Supportive and resolute

leadership at all levels of government

- Ranger force- Opinion leaders- Local governments

Facilitation of socioeconomicdevelopment, and of convenient transport inmountainous regions,without enhancing drugdistribution, prostitution,spread of diseases, andloss of order and security

L - Strengthening the education of people as well as themanagement and control bythe government

- Local governments

Provision of a pleasantand safe housingenvironment, withoutnoise, exhausts, shocksand (especially) trafficaccidents:

L, D - Avoid traffic through denselypopulated areas

- For works in urban areas:Sound barrier walls; buffer zones with trees; speed control

- Separation of resident areas,main traffic corridors, and noisyor otherwise polluting utilities,industries and other activities


- Investors- Local governments



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Appendix E: Climate change vulnerability

Sources:

MONRE (Mar 09): Study on Vietnam climate change scenarios. Institute of Hydrometeorology and Environment

MONRE (08):National Target program to respond to climate change. Ministry of Natural Resources and Environment, Hanoi

General

Calamities experienced from time to time in the Vu Gia-Thu Bon Basin include

• typhoons (tropical cyclones), with extreme winds, rainfall and storm surge, affecting the coastal zone;

• rain storms, thunderstorms and hailstorms, often local, causing floods and/or land slides;

• erratic rainfall, causing widespread floods and drought;

• saline intrusion into downstream parts of the rivers, related to low flow and high sea level; and

• erosion and siltation, related to vegetation cover and land use, causing structural damage andincreased flood risk.

The risks of each of these can be adversely affected by global climate change; and the vulnerability can beenhanced by changed land use, including settlements, construction and other activities in exposed areas.

Table 26: Climate change scenarios for Quang Nam Province

Concern 2050 2070 2100

Temperature 1.1 deg C increase 1.5 deg C increase 2.0-2.5 deg C relativeto 1980-1999

Rainfall in rainy season 0 -5% increase 0-5% increase

Rainfall in dry season Either 5% decreaseor 5% increase

Either 5% decreaseor 5% increase

Perhaps 20% increase

Annual rainfall Perhaps 10-15%increase compared to1990

Sea level raise - approximateincrease by 5 cm every 10 years

Up to 33 cm Up to 45 cm Over 70 cm

Note: The table lists estimates by MONRE under a moderate (A1B) scenario. It is not a prediction of what will happen but rather an example of what may happen

Potential climate change impacts and risks in key vulnerable sectors are indicated below.

Coastal urban areas and coastal tourism facilities

• Which areas are vulnerable to coastal erosion due to ongoing sea level raise and tropical cyclones?These areas will be affected by predicted sea level raise inundation (by over 70 cm by 2100 andincreased intensities of tropical cyclones.

• Which areas are vulnerable to supply shortages due to extensive pumping of ground waters? Theseareas will be affected by reduced fresh water availability and salt water intrusions.

Inland urban areas

• Which urban areas are vulnerable to water shortages? These may be further constrained by reducedavailability of fresh water (due to reduced dry season flows) and/or worsening of fresh water quality(due to increased pollution concentrations during reduced dry season flows).

• Which urban are vulnerable to local flooding and rainwater drainage during high rainfall episodes?These episodes may be more severe.



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Agriculture

• Which agricultural areas are vulnerable to water shortages? They will face an increased water demanddue to increased temperatures and evaporation.

• Which agricultural areas already experience significant damages to crops through uprooting duringstorms? These losses may be more severe due to predicted increase in intensity of cyclones.

• Which agricultural are vulnerable to sea level raise inundation, floods, water logging or salinization? Itmay be useful to consider gradual phasing out of agricultural activities in flood prone areas and inthose areas affected by 2050 sea level raise scenario (which is 33 cm).

Forestry

• Which forests in mountainous areas are vulnerable to soil erosion?

• Which forest areas are vulnerable to wildfires and insect attacks?

• Which forest areas are vulnerable to uprooting through uprooting during storms? These losses may bemore severe due to predicted increase in intensity of cyclones.

• Which coastal forests are being affected by increasingly intense cyclones, sea level raise, water logging or changes in salinity levels?

Fisheries and aquaculture

• What are the changes in the composition and productivity of coastal and marine fisheries?

• Are the changes in water salinity having any impacts on species that are sensitive to this issue(including shellfish and oysters). Some brackish species may be impacted by changes in water salinityduring freshwater flushing into brackish systems.

• Which mangrove ecosystems and coastal forests may be lost due to sea level raise, water logging andchanges in salinity levels?

Transportation

• Which seaports, wharfs, storage yards and warehouses can be affected by 2100 sea level raise (70cm), storms and coastal erosion?

• Which railways and road networks may be damaged or inundated due to sea level raise, floods anderosion?

• Which railways and road networks may act as an important barrier during floods?

• Which roads/rail-lines are vulnerable to landslides during high rainfall episodes?

Industry

• Which industrial parks are vulnerable to flooding or 2100 sea level raise inundation (70 cm)?

• Which industrial parks may have problems with drainage during high rainfall events?

• Which industrial activities will require intensive cooling? They may need to consider increased coolingcosts?

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